capital gains tax rate??

3 Replies

Hi there!

Just got a question about what the capital gains tax rate is on selling investment property is these days? Not sure I know any more with the tax law change this year. I've only purchased investment property to this point but may be looking to sell some in the near future. 

Thanks in advance!

@Brandon Komp

You may be exposed to depreciation recapture and capital gains tax upon the sale of an investment property.

Capital gains tax rates are 0%, 15% or 20% depending on your overall tax bracket.
You may also be hit with an additional 3.8% net investment income tax depending on your bracket.

Depreciation recapture is taxed at a maximum tax rate of 25%.
If your marginal tax rate is 37% - the depreciation recapture will be taxed at 25%
if your marginal tax rate is 12% - the depreciation recapture will be taxed at 12%