25% Depreciation recapture is higher than the tax rate in the years we took the depreciation We bought a house in 2001 for 83133.
Sold it 2012 for 65630.
Depreciated 31760 over 11 years.
We are having to pay a 25% recapture rate for the depreciation now which after all the calculation is $14257.... but in the 11 years that we took the depreciation we were only in a 15% tax bracket. Am i wrong or are we getting screwed???
Also 2012, is the first year we are in a higher tax bracket because I went back to work after being a stay at home mom for 9 years.
Thank you for any advice! |