Question

I sold an investment property in 2021 and need help estimating the tax payment due. Any suggestions?

Forum|Forum|4 years ago
November 18, 2021
2 replies
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TurboTax Premier Online

Employee

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

rjs

Employee

Here are three suggestions.

1. If you know the amounts of ordinary income and capital gain, you can use TaxCaster to estimate the tax. xmasbaby0 gave you a link to TaxCaster above.

2. If you need help determining the amounts of ordinary income and capital gain, buy a copy of the CD/Download TurboTax software for 2021 and prepare a rough tax return. (TurboTax Online for 2021 is not available yet. It will probably be available in early December.)

3. Consult a local tax professional.

If you use either suggestion 1 or 2, you have to enter all your income, not just the property sale, to get an accurate estimate.

Hal_Al

Employee

Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.
Enter the difference between the sale price and what you paid for it originally as a long term capital gain (LTCG). Depending on how much total income you have LTCG are partially taxed at 0%, 15%, 20% and/or 23.8%.

You don't mention what kind of investment property you had. A rental would have depreciation recapture, in addition to LTCG. Enter the depreciation you've taken over the years (depreciation "recapture") as other income. Depreciation recapture is taxed at your marginal rate, but not more than 25% (the Taxcaster tool is not capable of applying the 25% cap).