Federal exchange Services, LLC

1031 Exchange San Antonio
Capital Gains Tax

Application of the formula below for the estimation of potential capital gains tax on the sale of investment property is intended for illustration purposes only.  Any Exchanger contemplating an IRC 1031 exchange of investment property should consult with their respective legal or tax advisors to determine the suitability of any IRC 1031 tax deferred exchange.   


Step 1.

Calculate Adjusted Basis:
   Original Purchase Price

 


$______________

Add:

Non-expensed Improvements
   Sub-total 

+
=

 ______________
 ______________

Less:

Depreciation Taken
   Adjusted Basis

-
=

  ______________
$______________

Step 2.

Calculate Capital Gain:
   Sales Price

 

$______________ 

Less:

Adjusted Basis
   Sub-total

-
=

  ______________
  ______________

Less:

Transaction Costs
   Capital Gain

-
=

  ______________
$______________

Step 3.

Calculate Capital Gains Tax Due:

   

Multiply:

State Applicable Capital Gains Tax Rate
   State Capital Gains Tax

x
=

   ______________
$ ______________ (1)

Multiply:

Federal Capital Gain Tax 15%
Applicable to
Tax on Appreciation
 


x
=


           15%         
$______________ (2)

Multiply:

Federal 25% Tax Rate on
Depreciation Recapture
Tax on Depreciation Recapture


x
=


$           25%     
$_____________ (3)

Add:

Figures 1+ 2+ 3 = Capital Gains Tax Estimate

$_______________

       

*The Capital Gains Tax Estimate is for illustrative purposes only and is the estimated amount that maybe deferred using an IRC 1031 exchange.

       

 

Want us to Calculate this for you?
Step 1. Calculate Adjusted Basis:
 
Original Purchase Price:
Non-expensed Improvements:
Depreciation Taken:
Step 2. Calculate Capital Gain:
 
Sales Price:
Transaction Costs:
Step 3. Calculate Capital Gains Tax Due:
 
State Applicable Capital Gains Tax Rate:
State Capital Gains Tax:

 

Federal Exchange Services, LLC - Capitol Building watermark
 
 
Federal Exchange Services, LLC.
Energy Plaza
8620 N. New Braunfels, Suite 427
San Antonio, TX 78217
Telephone: (210) 828-9097
Fax: (210) 828-1655