How to calculate capital gain tax on sale of rental property?

[Jeffrey Chang]

Hi.

I am planning on selling a rental property in 3 months. I am trying to determine how much tax I would be responsible after sale.

One thing I am not sure about and I can't seem to get an obvious answer is: are you taxed on down payment when I purchased the property?

Ex: Let's say I bought the property at 200K. I put down 50K as down payment. I sold the property at 300K. The remaining mortgage is 100K. Let's assume I didn't claim any depreciation or do any improvement. Is the capital gains on 200K or 150K (minus 50K)?

Thank you.

[Caroline Gerardo]

Down payment has nothing to do with the calculation

Original sales price $200,000

How much depreciation? you say zero

How much capital improvements, (as in money spent on repairs) - subtract you say zero

Final price  $300000 + add

Your capital gain is  $100000