HOW MUCH PROFIT TAX ON RENTAL PROPERTY SALE?
DEAR BOB: I own a rental income property purchased 30 years ago. I may want to sell it but am concerned about the capital gains tax. My profit will be around $400,000. I am 61, out of work, with no pension. How much capital gains tax will I owe? – Charles S. DEAR CHARLES: The current federal capital gains tax rate is 15 percent, plus your state income tax. Presumably, part of your capital gain will be “recaptured” depreciation, which is taxed at a special 25 percent federal tax rate. For full details, please consult your tax adviser. NO LIMIT TO USE OF $250,000 HOME-SALE TAX EXEMPTION DEAR BOB: Can a husband and wife earn up to $250,000 each every two years on the sale of their principal residence? My brother thinks it is available only once in a lifetime – Colleen W. DEAR COLLEEN: Your brother is wrong! Internal Revenue Code 121 can be used over and over again every 24 months without limit. If you use this tax benefit frequently, you will become known among your friends as a “serial h
