What’s my capital gain on this if I sell?

[John Morgan]

I bought a C class property exactly one year ago for 50k. I spent 50k rehabbing it. So I'm all in for 100k. It's worth 140k now. If I sell it for 140k, will I be paying long term 15% capital gains on just 40k? Can I write off every dime I've spent on it in the last year? Including realtor commission and closing cost fees? I assume I will have recapture from depreciation and what I wrote off on last years taxes taken out too. Just trying to decide if I want to rent to C class people anymore. I've had two different tenants in there in the last year; and evicting the new ones today due to non payment of rent. Rent is $1,400/month which is good cash flow, but I think I would rather reinvest this money into a less cash flow B class SFR with more stable tenants.

[Wayne Brooks]

Your cap gains is on your net profit....$40k(assuming you haven’t already written off part of the $50k rehab as an expense) less selling expenses, plus depreciation recapture as you mentioned.  A cpa can give you more precise number/rate after looking at your other income.