how to calculate taxes on a sold rental

[Mary Jay]

Hi guys,

My 1031 exchange may fall aprat.

I am trying to figure out how much would I pay in taxes on a property that I sold?

I sold it back in May for 120K, I bought it for 25K back in 2009

I am in a 30% tax bracket

Am I calculating it approximately correctly?

120K

- 6k realtors commission

- 25k purcase price

89K is the profit (lets say 90K for simplicity)

So 30% of 90K is about 30K

Does it mean that I will have to pay to the IRS about 30K in taxes?

[Mary Jay]

Quote from @Bill B.:

As a “LAYPERSON’ my GUESS would be 20% on the $90k ($18k) (I THINK that’s the max long term capital gains rate.) plus 25% depreciation recapture which shouldn’t be much. Call it 25% times 3.65% per year (13) times $25k purchase price (assuming the land was worth nothing, this is the max you’d owe.) so $25k times 3.65% = $912 x 13 years is $11,860< times 25% is $2965. 

So my GUESS would be a little less than $21k. 

thank you sir!
I am selling my other property now, I will have about 50K in profit, would it be approximately about 10k I would owe to the IRS if I dont do a 1031 exchange?

(I bought it last year for 145K, owe 117K on it and selling for 180K)