Tax Implications of Selling Rental Property

In this course, you'll learn how to handle the tax side of selling a rental home step by step:

• Figuring Out Basis – Learn what "basis" means (your starting value in the property).
• Adjusted Basis – See how to adjust that number for things like improvements and depreciation.
• Sales Price Allocation – Understand how to split the sales price between the property and any related assets (like land or appliances).
• Gain or Loss – Learn how to tell if you made money (gain) or lost money (loss) on the sale.

You'll also cover:

• Depreciation Rules – How depreciation affects your numbers, even if you didn't claim it.
• Section 1250 Gain – How depreciation may create special taxable income, taxed up to 25%.
• Reporting the Sale – How to report the gain or loss and figure out the final tax owed.
• By the end, you'll know how to:
  • Work through the numbers for a property sale
  • Report them correctly on tax return
  • Understand exactly how much tax your client (or you) will pay