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Updated about 2 months ago on .
Irs Taxes On Sale Of Property
I have 6 houses and consider myself a novice. I was thinking of selling 1 house and taking some profits, but I have become aware of the following federal taxes
1. Depreciation Recapture= 25% tax
2. Long term capital gains= 20%
3. Net investment income tax= 3.8%
I was aware of the Long term capital gains tax, but I was surprised to find out about the Depreciation Recapture and the Net investment income tax. Now, I am questioning if it even makes sensse to develop anymore properties.
Does anyone else have any thoughts on this?
Thanks
EJ