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Updated over 3 years ago on . Most recent reply
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Payoff Primary mortgage with Rental property sale proceeds
Hi,
I want to sell my rental property which had appreciated well enough to payoff my primary home mortgage. Any pointers on how the tax on appreciation is calculated taking into considering the passive activity loss over the years and depreciation recapture? I read somewhere that depreciation recapture tax will be based on my ordinary income tax bracket. Will that be the case even if the depreciation never reduced my ordinary income tax in previous years (due to income limits) and just got added to the passive activity loss?
Thanks
Sattir