Capital gains (sorry if repost)

[Rance Craig]

Hi,

I am in the process of selling a rental property. this was formerly my primary residence (3 of past 5 years) and has been rented for 2 years. it is paid off and I will net around $130k prior to taxes. my household income is around $100k and I now own a second home with a mortgage. 

My question is, will I be subject to capital gains tax? If so, how much? I want to be sure to set aside enough to pay my taxes. I live in Texas if that changes anything.

Thanks!

[Bart H.]

Originally posted by @Rance Craig:

Hi,

I am in the process of selling a rental property. this was formerly my primary residence (3 of past 5 years) and has been rented for 2 years. it is paid off and I will net around $130k prior to taxes. my household income is around $100k and I now own a second home with a mortgage. 

My question is, will I be subject to capital gains tax? If so, how much? I want to be sure to set aside enough to pay my taxes. I live in Texas if that changes anything.

Thanks!

I am not a CPA, and this isnt tax advice, but my understanding is if you close within the 2 of the last 5 years total, that you will not owe capital gains.  As I understand it though, you will owe taxes on the recapture of depreciation.