Tax Tips for a Property Sale

Capital gains exclusion requires 2 years ownership and use; gains over $250K/$500K taxed at 15%-20% plus 3.8%.
Profit from sale adds to yearly income, possibly pushing you into a higher tax bracket and triggering extra 3.8% tax.
Depreciation recapture can cost landlords up to 25% of all depreciation taken, even if not claimed.
Strict 1031 exchange deadlines: 45-day identification, 180-day closing; missing them means losing tax deferral.
IRS rule changes in 2025-26: fewer rental-loss deductions for >$100K income, stricter 1031 reporting.