1031 Exchanges

Capital Gains Calculator

When estimating Capital Gains Tax on the Sale of Investment Property, an Exchanger should fully understand the availability of tax deferred exchange benefits for the property being considered for an exchange. While the following formula is intended to provide an estimate of capital gains, it is always important to consult with your qualified tax and or legal advisors to determine precise information. Complete the following calculations to obtain an estimate of potential capital gains.

First: Calculate the Adjusted Basis:
 Original Purchase Price $
 Add Non-Expensed Improvements $
 Equals $
 Minus Depreciation Taken $
 Equals Adjusted Basis $
 
Second: Use the Adjusted Basis to determine the Capital Gain Tax:
 Sales Price $
 Minus Adjusted Basis $
 Minus Transaction Costs $
 Equals Total Gain on Sale $
 
Third: Determine capital gain tax due:
 Add Federal Capital Gain Rate (15%) $
 Add State Capital Gain Rate - Enter Rate:  $
 Total Capital Gain Tax Due $

1031 Exchange Literature