Tax considerations when selling a short term rental

[Tom Rairdon]

Hello all,

Has anyone sold a short term rental owned over a year  as a non real estate professional that qualified as short term capital gains tax deductions with expenses and depreciation? Did the proceeds from the sale count as short term or long term capital gains? I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property? Thank you for any advice. 

[Nathaniel Quesenberry]

Tom, 

Based on what you've provided, if the property was held over one year, you'd be subject to the long term capital gains rates and any depreciation that you took on the property in the past would have to be "recaptured" (Added to your income) at the short term tax rates (but it will not exceed 25%). 

You'll want to check with your tax advisor of course though.