Capital Gains Tax on sale of rental house in Utah

[Jay Fisher]

I'm selling my rental house (not primary home) in Utah this year and want to know how much I'll owe especially in capital gains taxes.  I'm married and we'll be filing jointly.  Our gross income this year will be between $70,000.00 and $85,000.00 depending on how much my wife works.  We bought the house in 1997 for $120,000.00, lived in it for ten years, then rented it for about ten years.  The house has been empty for a little over a year while I have been doing repairs and updating the property.  Identical homes in the neighborhood have recently sold for $310,000.00.  I know I'll have to pay taxes on the claimed depreciation but I don't know what to expect with capital gains.  We don't want to live in it for the next two years or use the profits from the sale to buy another investment property.  We just want to sell it and pay off our debts.  Any help would be very much appreciated.  

[Natalie Kolodij]

Living in the house wouldn't really help much any way. 

If you sell for $310k

Then subtract your costs fo selling 

Then subtract the total costs of renovations your doing 

Then subtract from THAT your adjusted basis (That 120k less the depreciation taken over the 10 years) 

And that will be your gain amount 

And you'll likely land in the 15% cap gains bracket- but your CPA should be able to easily give you a fairly exact estimate on taxs since they'll know all your details.