He's a little busy at the moment, doesn't want to answer my house questions until next month.
I have a rental house that I'm considering selling. I'm in California, the house is in Idaho. Help me understand how the sale will be taxed?!? I'm just feeling like this is a risky investment. I know it's made money even if it flows slightly negative. Between the distance, and the 10% management fees, I feel like now's a decent time to cut and run. The market in Idaho is still going fairly well.
As I understand it, I take the sale price minus the purchase price (and any selling costs) and pay 15% on that money.
I'll also pay 25% on the depreciation.
Do I have this right? What about state tax? What else should I be considering in this decision?