Enter Property Sale Details
Example Data Table
| Scenario |
Sale Price |
Purchase Price |
Improvements |
Selling Costs |
Depreciation |
Exclusion |
| Rental property |
$650,000 |
$420,000 |
$45,000 |
$39,000 |
$18,000 |
$0 |
| Primary home |
$750,000 |
$480,000 |
$65,000 |
$45,000 |
$0 |
$250,000 |
| Second home |
$530,000 |
$390,000 |
$25,000 |
$31,800 |
$0 |
$0 |
Formula Used
Amount realized = Sale price − Selling costs
Adjusted basis = Purchase price + Buying costs + Capital improvements − Depreciation
Gross capital gain = Amount realized − Adjusted basis
Depreciation recapture gain = Lesser of depreciation claimed or positive gain
Regular taxable gain = Positive gain − Depreciation recapture gain − Allowed exclusion
Estimated tax = Regular tax + Recapture tax + State tax + Local tax + Net investment income tax
Net proceeds after tax = Amount realized − Mortgage payoff − Estimated tax
How to Use This Calculator
Enter the expected sale price and original purchase price.
Add closing costs paid when buying the property.
Enter selling costs, such as commission and transfer charges.
Add capital improvements that increased property value.
Enter depreciation already claimed for rental or business use.
Add any allowed exclusion, if it applies to your situation.
Enter tax rates as percentages, then press Calculate.
Use CSV or PDF buttons to save your result.
Understanding Real Estate Capital Gain
Real estate capital gain is the profit made after selling property. It is not only the difference between sale price and purchase price. The adjusted basis matters. Closing costs, capital improvements, selling fees, and depreciation can change the final result.
Why Adjusted Basis Matters
Adjusted basis starts with the purchase price. Buying costs are added when they qualify. Major improvements are also added. Depreciation lowers the basis for rental or business property. A lower basis usually creates a larger taxable gain.
Selling Costs and Net Proceeds
Selling costs reduce the amount realized from the sale. These costs may include agent commission, transfer charges, legal fees, advertising, and escrow charges. The calculator subtracts these costs before measuring gain. Mortgage payoff is also shown, because sellers often need cash flow after debt is cleared.
Exclusions and Depreciation
Some home sellers may qualify for a gain exclusion. The calculator lets users enter any allowed exclusion. Rental depreciation is handled separately. Depreciation recapture can still create tax, even when the normal gain is reduced. This makes the estimate more useful for rental homes and mixed use property.
Tax Rate Planning
Tax rules vary by location and filing status. For that reason, the calculator uses editable rates. You can enter federal, state, local, recapture, and net investment income rates. This design keeps the tool flexible. It also helps compare different sale dates or property strategies.
Better Decisions Before Selling
A real estate sale can look profitable at first. Costs and taxes may reduce the final amount. This tool shows gross gain, taxable gain, estimated tax, net before tax, and net after tax. It helps investors, homeowners, and agents review the numbers quickly.
Use it for Planning
Use this calculator before listing a property. Try different selling prices and fee amounts. Add expected repair or improvement costs. Test different exclusion values. Then review the result with a qualified tax professional before making final decisions.
Common Inputs to Check
Small input errors can change the answer. Confirm the settlement statement, improvement records, and depreciation schedule. Enter costs as positive amounts. Do not enter the mortgage as a selling cost. It affects cash proceeds, not the capital gain formula. Keep records for review.
FAQs
What is real estate capital gain?
It is the profit from selling property after adjusted basis and selling costs are considered. The calculator estimates that gain and possible tax impact.
What is adjusted basis?
Adjusted basis usually starts with purchase price. It may add buying costs and capital improvements. It may subtract depreciation claimed on rental or business property.
Are selling costs deductible from sale price?
Many selling costs reduce the amount realized. Common examples include agent commission, transfer fees, escrow charges, legal fees, and advertising costs.
What is depreciation recapture?
Depreciation recapture is gain linked to depreciation already claimed. It can be taxed differently from regular capital gain, especially on rental property.
Can I enter a home sale exclusion?
Yes. Enter the allowed exclusion amount in the exclusion field. The calculator applies it against regular gain after depreciation recapture is separated.
Does mortgage payoff reduce capital gain?
No. Mortgage payoff affects cash proceeds. It usually does not reduce the capital gain formula, so this calculator shows it separately.
Why are tax rates editable?
Tax rates depend on location, income, filing status, and property type. Editable rates make the calculator useful for many planning situations.
Is this calculator a tax filing tool?
No. It provides an estimate for planning. Confirm your final numbers with settlement records, tax forms, and a qualified tax professional.