Advice on sale needed ASAP
Hey all, I need advice regarding the sale of my rental. It is a former residence that is a cookie cutter town house. I am basically breaking even on. I owe $107k on it and market value is $157-160k.
1. Are transaction costs typically 8% of the sale? That is what I am being told (factoring in commissions and misc. fees).
2. According to tax law I don't think I need to pay any capital gains as I lived there from 2010-2012. It became a rental in 2013. From my understanding I need to have lived there for 2 of the last 5 years. Is this correct?
3. I don't want to hassle with a 1031 as I am still trying to decide where I want to buy the next properties. Currently considering out of state as an option. That said, I will have to pay depreciation recapture. As I only took depreciation for 2 years of around $4k each year, am I only taxed at 25% of that so a total of only $2k?
4. If my math serves me right, my net in pocket would be: $157k-$12,560 (transaction costs) - $2k (depreciation recapture) - $107k = $35,440. Is this right or am I missing anything?
Thanks,
Raky