Depreciating the capital gains tax owed on the sale of an investment property
I've got client with a question relating to capital gains taxes on the sale of an investment property. If you have any familiarity with capital gains taxes/depreciation please chime in.
He bought a single family house in Virginia in 1980 for about 65,000. It's primarily been a rental property since then. He's now looking to sell it for about 450,000, but he's concerned about his tax liability. Will the entire gain be subject to capital gains taxes? Or can some of it be depreciated, thereby reducing the tax owed? I don't believe any depreciation has been taken before. Yes, I know you are not providing tax or legal advice. Just curious to hear if people think the tax can be reduced and, if so, in what way.