taxes - selling income property, lived in for several years

[John Richards]

Hello everyone,

I am 59 years old and I am selling an out-of-state (NV) residential income property that was originally my primary residence and I am wondering about what I can do to lessen the tax hit.

I originally purchased this property in 2002 for $100k. I lived in property, as a a primary residence, until 2009 when I then converted into an income property and moved to ID.

From 2009 until present, I depreciated the property and deducted the repairs, expenses, etc. each year on my taxes.

I will be now be selling for approx $230k soon and I am not interested in purchasing any other property at this time. (I do have a paid off primary residence in ID that I now reside in).

I am totally fine with putting $ from the sale into anything that would help defer the tax penalty, even if I wouldn't be able to touch these $ until full retirement age (age 62?, 65?, 67?...to be determined).

Does anyone have any ideas on how to lesson my tax burden? Or, am i basically looking at paying taxes on approx $130k ($230k sell price - $100k purchase price = $130k profit) of income gain? Any idea what the tax rate be (approx.)?

Any advice would be greatly appreciated. Thank you.