Sale of Rental Property and Capital Gain Taxes

[Missy Price]

Thank you in advance forum members. I need clarification on how the sale of a rental property would impact my 2018 tax liability. The rental property is in NC where I have no W2-income (currently live in CA). My AGI for 2018 is estimated around $169K and $18K exemption for an estimated Taxable income of around $154K (factoring in CA tax refund). This puts me below the $157,500 at 24% tax bracket (Head of Household) on W2 wage only without the sale of the rental property. Factoring sales agent fee of 6%, repair, mortgage payoff etc., I would have about $94K in capital gains. I used the online calculators from multiple sites and came up with total capital gains tax for both Fed and NC at around $33K. I have a carryover loss of around $25K not included in this calculation. Does the $94K in capital gain push my AGI up to the next tax bracket (32%)? Or, is the real estate capital gain tax (and depreciation recapture) calculated separately? I am trying to determine my estimated tax hit from the sale. I am aware of the 1031 exchange and do not want to do an exchange and prefers to exit the rental business completely (too much headache). Thank you