Sold Your Property for Almost What You Paid? You May Still Owe Taxes #shorts
In this YouTube short, real‑estate professional Shafiq Hirani explains that even if a property is sold for roughly the same amount it was bought for, the owner may still owe taxes due to three distinct tax layers. First, depreciation recapture taxes the deductions previously taken on the property, regardless of whether the owner actually claimed them; this tax is mandatory and non‑negotiable. Second, capital gains tax applies to any appreciation above the adjusted basis, typically taxed at long‑term rates of 15% or 20% for most owners. Third, the Net Investment Income Tax (NIIT) adds an additional 3.8% for many high‑income owners, and all three taxes can be due in the same tax year. The speaker emphasizes that failing to claim depreciation does not avoid recapture and is one of the worst decisions a building owner can make.
