How Much Tax Will I Owe When I Sell?
The layers of tax that can apply to the sale of investment real estate.
Start with your gain
Your gain is generally the sale price minus selling costs minus your adjusted basis (what you paid plus improvements, minus depreciation taken).
The layers
Federal long-term capital gains tax (0%, 15%, or 20%), depreciation recapture (up to 25%), the 3.8% net investment income tax for many higher earners, and state income tax where applicable.
Run the numbers
Our calculator gives a rough estimate based on a few inputs. For a precise figure, work with your CPA, who can account for suspended losses, installment sales, and other factors.
Have questions about your situation?
Book a complimentary strategy call with Creative Capital Wealth Management Group.
Schedule a Strategy CallEducational information only; not tax, legal, or investment advice. DSTs involve risk, including loss of principal, and are available only to accredited investors. Consult your own advisors.