Exactly how do I calculate capital gains tax on the sale of real estate investment property that I am selling in the name of my LLC in Louisiana?

ANSWER

The BIDaWIZ Team's Answer:

You would need to understand what your basis is in the property, which increases with additions/improvements and decreases with items such as depreciation. Then you would need to know the sale price to calculate the gain. The sale price less the adjusted basis would be your capital gain. Please note that when residential rental property that has been depreciated is sold, the gain from the sale attributed to un-recaptured depreciation is consider a Section 1250 gain and taxed at a maximum rate of 25% . The remaining is taxed at the 15% long-term tax rate if it is held for over a year.