Calculating Capital Gain

CALCULATING CAPITAL GAIN (#4)

"ANALYZE THE BENEFITS OF AN EXCHANGE
BEFORE YOUR SELL"

 
1. CALCULATE NET ADJUSTED BASIS

 

Original Purchase Price
__________
+ Improvements __________
- Depreciation __________
= NET ADJUSTED BASIS __________
   
2. CALCULATE CAPITAL GAIN

 

Sales Price __________
- Net Adjusted Basis __________
- Cost of Sale __________
= CAPITAL GAIN __________
   
3. CALCULATE CAPITAL GAIN TAX DUE

 

Recaptured Depreciation (25% ) __________
+ Federal Capital Gain (15% or 20% or 28%) __________
  + Medicare Surtax (3.8%) __________
+ State Tax (when applicable) __________
= TOTAL TAX DUE __________
   
4. ANALYZE PURCHASE-NO EXCHANGE
 
Sales Price __________
- Cost of Sale __________
- Loan Balances __________
= GROSS EQUITY __________
- Capital Gain Taxes Due __________
= NET EQUITY __________
   
Net Equity X 4 = __________
   
5. ANALYZE PURCHASE-EXCHANGE
 
Capital Gain Taxes Due __________
Gross Equity = Net Equity __________
Gross Equity x 4 = __________

   
Is a 12-year holding period long enough to be considered "held for investment?" Find out in API's latest 1031 Exchange eNews.
   
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