Try Our Real Estate Capital Gains Tax Calculator!
If you’re selling a commercial or multifamily property, understanding your capital gains tax burden is essential. As many already know, capital gains taxes can be deferred in several ways, including by using a 1031 exchange, in which an investor/owner “exchanges” one property for another of equal or higher value and is permitted to avoid paying their capital gains taxes until the sale of their new “exchanged” property.
Later on, when an investor/owner decides to sell this second property, they can also exchange it for another property of equal or greater value in a second 1031 exchange; in fact, there is currently no limit on how many times an investor can utilize 1031 exchanges to defer their capital gains tax burden. However, when they finally sell the property, they will still need to pay whatever capital gains taxes they owe on each property they have sold.
Use the calculator below, provided by JRW investments, to calculate your potential capital gains burden upon the sale of a commercial or multifamily property.
| Sales Proceeds | ||
| Total Sales Price (Including Debt): | $ | |
| Total Sales Cost: | $ | ? |
| Total Sales Proceeds (Including Debt): | $0 | ? |
| Basis | ||
| Original Purchase Price: | $ | ? |
| Accelerated Depreciation Utilized: | $ | ? |
| Straight Line Depreciation Utilized: | $ | ? |
| Purchase Price Basis: | $0 | ? |
| Capital Improvements: | $ | ? |
| Total Estimated Basis: | $0 | ? |
| Capital Gains | ||
| Total Sales Proceeds (Including Debt): | $0 | ? |
| Total Estimated Basis: | $0 | ? |
| Total Estimated Capital Gains: | $0 | ? |
| Estimated Capital Gains Taxes | ||
| Total Estimated Capital Gains: | $0 | ? |
| Federal Capital Gains + Medicare Tax Rate: | 23.80% | ? |
| Federal Capital Gains + Medicare Taxes: | $0 | ? |
| Depreciation Subject to Recapture Tax: | $0 | ? |
| Depreciation Recapture Surcharge: | 5.00% | ? |
| Total Depreciation Recapture Surcharge: | $0 | ? |
| Total Estimated Capital Gains: | $0 | ? |
| State Income Tax Rate on Capital Gains: | ||
| State Capital Gains Income Tax: | $0 | ? |
| Federal Capital Gains + Medicare Taxes: | $0 | ? |
| Depreciation Recapture Surcharge Tax: | $0 | ? |
| State Capital Gains Income Tax: | $0 | |
| Total Estimated Capital Gains Tax: | $0 | ? |
| Estimated After-Tax Equity (Net Proceeds) | ||
| Total Sales Proceeds (Including Debt): | $0 | ? |
| Debt on Relinquished Investment: | $ | ? |
| Gross Equity Proceeds from Sale: | $0 | ? |
| Total Estimated Capital Gains Tax: | $0 | ? |
| Net Equity Proceeds From Sale: | $0 | ? |
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JRW Investments does not give tax advice. This calculation is for illustration purposes only and is based on multiple levels of assumptions that may not directly apply to your situation. For example, you may have carryover losses that can reduce your total tax liability. Please consult your tax counsel and do not rely solely on the calculations or results listed above.