Commercial property sale = tax liability

Terry Says

First you have to establish your “cost basis.” That is the purchase price plus any improvements you made over the years (new roof, new heating system, etc — anything permanent.”

Did your accountant take any depreciation on the property on your tax returns over the years? It’s important to know that, because it must be added back in when you calculate taxes.

Then you will pay capital gains taxes on any profits. The rate and amount depend on your other taxes and your filing status (married, joint return, etc). For 2026, long-term capital gains are taxed at 0%, 15%, or 20% depending on taxable income.
You need an accountant for this!

And be aware, that if you’re on Medicare, this gain could increase your Medicare Part B and D premiums. Be aware of that consequence of adding a gain to your other income.