Corcapa does not provide individual tax advice but total tax can exceed 40% depending on how long the property has been owned, depreciation claimed and remaining basis. If you are a resident of a tax-free state then your tax bill is often less than 40%.
Federal Taxes:
15 – 20% tax on capital gain. Capital gain tax rate increases from 15 – 20% when Adjusted Gross Income (AGI) exceeds $418,400 per 2017 tax reform.
Or
Depreciation is taxed at 25%. The gain from sale is primarily capital gain as described above but some will be taxed at 25% federal rates.
And
3.8% Medicare Surcharge, often referred to as Obamacare tax.
State Taxes:
The gain and/or depreiation described above is also taxed by the states at the individual state level.
Corcapa strongly recommends that you discuss the actual tax bill with your tax advisor.