Real Estate Capital Gains Calculator with 1031 Exchange Planning
Harv Balu
HarvRealtor.com
Capital Gains Calculator
This calculator estimates capital gain, depreciation recapture, and a simple tax and after tax equity view. It is designed for education and quick planning, including potential 1031 exchange conversations. Enter numbers without dollar signs. Commas are ok.
1. Net adjusted basis
Basis is a simplified way to estimate your cost in the property. Improvements increase basis. Depreciation reduces basis.
$
Drag the slider or type a value. Updates automatically.
$
$
If this is a primary home with no depreciation, enter 0. If unsure, your CPA can confirm.
Net adjusted basis
Purchase price plus improvements minus depreciation
$0
2. Capital gain
Capital gain is sale price minus basis minus exchange expenses. This is a simplified view.
$
$
Example: agent commissions, escrow, title, transfer related fees.
Capital gain
Sales price minus basis minus expenses
$0
3. Estimated capital gain tax
This section estimates depreciation recapture and basic federal and state tax. It is not a tax return.
Rate depends on income and filing status. This is a simplified selector.
%
Example: enter 9.3 if you want to model 9.3 percent.
This is the NIIT concept. Eligibility depends on AGI thresholds and other details.
Total estimated taxes due
Recapture tax plus federal tax plus state tax
$0
Depreciation recapture tax
25 percent on recapture base, limited by gain
$0
Federal capital gain tax
Applied to remaining gain after recapture base
$0
State tax estimate
Simple model on total gain
$0
Recapture base used
Minimum of depreciation and positive gain
$0
Remaining gain used for federal rate
Positive gain minus recapture base
$0
4. After tax equity
After tax equity is a simplified equity view after typical sale costs, loan payoff, and estimated capital gain taxes.
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$
After tax equity
Sales price minus sale costs minus loans minus estimated taxes
$0
For 1031 exchange planning, the deferrable amount is often tied to realized gain and how proceeds and debt are replaced. Your qualified intermediary and tax advisor will confirm exact requirements.
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Snapshot
$0
Estimated capital gain
Net adjusted basis
$0
Sale price
$0
Estimated taxes
$0
After tax equity
$0
Basis
Purchase plus improvements minus depreciation
$0
Gain
Sale minus basis minus exchange expenses
$0
After tax equity
Sale minus costs minus loans minus taxes
$0
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Quick guide to capital gains and 1031 exchange
This page is built to keep things simple and readable. Real tax outcomes can differ based on ownership period, filing status, passive loss carryovers, primary home exclusion rules, and state rules. For 1031 exchange timing, identification and closing deadlines are strict, so always confirm details with a qualified intermediary and your tax advisor.
What this calculator is doing
- Calculates net adjusted basis from purchase, improvements, and depreciation
- Calculates a simplified capital gain after typical sale expenses
- Estimates depreciation recapture tax and basic federal and state tax
- Shows a simple after tax equity number for planning
Common seller questions
- Depreciation recapture is usually taxed up to 25 percent, limited by gain
- Federal capital gains rate is often 15 or 20 percent depending on income
- Some households may owe a 3.8 percent Medicare surtax based on AGI
- State rules can be different and may not match federal treatment
Disclaimer. This calculator is for educational and estimating purposes only. It is not tax advice, legal advice, accounting advice, or a substitute for professional guidance. Tax outcomes can vary based on facts and circumstances, including but not limited to filing status, income level, primary residence exclusions, depreciation schedules, passive activity rules, transaction costs, state rules, and timing. For official numbers, consult your CPA or tax advisor and review closing documents. For 1031 exchange planning, consult a qualified intermediary and confirm deadlines and requirements before acting. Presented by Harv Balu, REALTOR®. HarvRealtor.com.
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Want a walk through of your numbers? Contact Harv Balu, REALTY EXPERTS, DRE #02195792.
Questions people ask
How is the gain on a property sale calculated?
Your gain is roughly the sale price minus selling costs, minus your basis, which is what you paid plus qualifying improvements. For rentals, depreciation you claimed along the way reduces basis and comes back at sale as recapture. This calculator walks those pieces so you can see the estimated gain and the after tax picture.
What is the primary residence exclusion?
Federal law lets many homeowners exclude a substantial portion of the gain on a primary residence if they meet the ownership and use tests, generally living in the home for enough of the recent years before the sale. Whether you qualify, and for how much, depends on your facts, so confirm the details with a tax professional before you count on it.
What is depreciation recapture?
If the property was a rental, the depreciation you deducted over the years is taxed separately when you sell, at rates that differ from regular capital gains. It applies even if you never actually claimed the deduction you were entitled to, which surprises many owners. The calculator includes a recapture line so the estimate is not overly rosy.
When does a 1031 exchange make sense?
A 1031 exchange lets you defer the tax on an investment property by rolling the proceeds into another qualifying investment property under strict identification and closing deadlines. It does not apply to a primary residence. It shines when you want to stay invested in real estate rather than cash out, and it requires a qualified intermediary from day one.