re: Sold house/tax question

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Sold for $232k. So minus $155k leaves $77k as basis.

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Is $232K expected net of sales price?

You purchased it for $155K, but if you have been renting it out since 2027, you have taken depreciation which reduces your basis.

Rough math... 80% of 155K (20% allocated to land which we don't depreciate) is 124K, divided by 27.5 is approx 4,500 of depreciation per year. 6 years = $27K, so that drops your basis down to 155-27 = $128K

Compared to $232K selling price, that gives you $104K in gain... of which $27K will be taxed as ordinary income uo to a 25% rate, and the balance of the gain will be taxed as capital gain income. Depeneding on where the house is located, state taxes may apply as well.

You can do a 1031 but it has to be in process before closing, because the closing proceds must be escrowed.