A rental-property sale needs an adjusted-basis calculation, not simply sale price minus the remaining loan. Original basis, improvements, depreciation, selling expenses, and other adjustments can affect the result.

Depreciation can change the character and taxation of gain. Failing to claim depreciation in an earlier year does not necessarily mean it can be ignored when the property is sold. Suspended passive losses also need a separate review.

Before closing, collect purchase and sale documents, prior depreciation schedules, and improvement records. A projection should consider federal and state taxes and the timing of estimated payments. Keeping only the settlement check is not enough to reconstruct the tax result.

Your next steps

• Reconcile basis and accumulated depreciation.
• Provide selling expenses and prior suspended-loss information.
• Project the tax before spending the sale proceeds.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.