Client purchased residential rental in 2000 for $115,000. Sold in 2007 for $195,000. Total gain, including approx $22,000 depreciation taken, is approx $102,000. Client is subject to 25% marginal tax rate. What is the capital gain rate applicable to this gain? Comments appreciated.
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Long Term capital gain rate
Is capped at 15%.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
Unrecaptured section 1250 gain (attributable to straight-line depreciation on real property) has a maximum capital gain rate of 25%.
The remaining gain is subject to regular capital gains rates.Comment
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There was a post in regards to this some weeks earlier. If I understood and remember right, then up to the 15% bracket the cap.gain 5% and gain above is 15%.Comment
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