I found a calculator that figures your tax bill between capital gains, depreciation recapture and medicare tax :
Capital Gain Tax Calculation
Use it for estimation purposes only.
The calculator is hosted by Asset Preservation Inc. who handles 1031 exchanges. I am not a CPA or anything and I can't attest to the 100% accuracy of the calculator but it looks correct to me.
We've got a rental property for which my initial investment was about $50,000. If I sold that property today for $55,000 then my tax bill would be about $4750. Huh? Yeah. Taxes would eat up almost my entire gain. If our income was significantly higher we'd get hit with the new 3.8% Medicare tax and the bill would be $5548. I could theoretically have a tax bill that eats up over 100% of our gains. Yikes! Well almost all of that is due to depreciation recapture. I've owned that property for over a decade and would have to repay the depreciation at 25%. That alone accounts for ~$4500 in taxes. Remember folks that depreciation on rentals is really just tax deferral.