Selling rental property

[Harald Blaauw]

Hello fellow investors: we are planning (for the first time) to sell 2 properties in the next 2 months, and mostly pay off other ones with it. My CPA said that the IRS will add the full sale price to our income to produce the rate it will be taxed at (15 or 20 % on capital gains). Anyone’s heard this before? I can’t find it on IRS.gov.. thanks a million!!

[Darius Ogloza]

Was depreciation recapture mentioned?  Recapture may have driven your basis to zero - if so, then the capital gains tax will be on the full amount of sale.