Taxes for Landlords, pt. 5: Selling a Rental Property

If you own rental property, there can be significant tax consequences when you sell it. Your taxable gain usually has nothing to do with the amount of cash you receive at closing, and is instead based on what you originally paid for the property, any costs involved in selling it, what you sold the property for, and any depreciation you took (or could have taken) on the property.

This video details how the gain (or loss) on the sale of a rental property is calculated, and where the sale is reported on the tax return.

Before you watch this video, you probably should watch (or rewatch) these videos:

Other videos on rental property:
Rental Income:    • Taxes for Landlords, Part 1: What is ...  
Rental expenses:    • Taxes for Landlords, part 2:  Rental ...  
Rental property depreciation and amortization:    • Taxes for landlords, part 3 - Depreci...  
Schedule E:    • Taxes for Landlords 4:  Putting it al...  
Rental Loss Limitations:    • Taxes For Landlords: Rental loss limi...  

How is Capital Gains Tax Calculated?    • How is Capital Gains Tax Calculated?  

What is a Capital Gain?    • What is a Capital Gain? (and how are ...  

RESOURCES and INFORMATION:

IRS Publication 544: "Sales and Other Dispositions of Assets": https://www.irs.gov/pub/irs-pdf/p544.pdf

IRS Form 4797 "Sales of Business Property": https://www.irs.gov/pub/irs-pdf/f4797...

IRS Form 1040 Schedule D: "Capital Gains and Losses": https://www.irs.gov/pub/irs-pdf/f1040...

IRS Form 1040 Schedule D Instructions (contains the Schedule D worksheet featured in the video): https://www.irs.gov/pub/irs-pdf/i1040...

Image Credit:

Wikimedia Commons (CC-SA 3.0)
NatGeoLover

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio Library

Background and Outro Music: George Street Shuffle, Kevin McLeod, http://incompetech.com via YouTube Audio Library

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.

The tax information in this video is based on tax law and IRS regulations in place when this video was published, and is subject to the whims of Congress.