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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 = __________

 

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