Estimating the  Capital  Gain Tax on the Sale of  Investment Property  

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STEP 1. Calculate Net Adjusted Basis $ original purchase price +$ improvements -$ depreciation   EQUALS NET ADJUSTED BASIS STEP 2. Calculate Capital Gain Sales Price of Property $ sales price -$ net adjusted basis -$ costs of sale (commissions, fees, etc.)   EQUALS CAPITAL GAIN STEP 3. Calculate Capital Gain Tax Due $ recaptured depreciation (25%) +$ federal capital gain tax (15%)    % your state capital gain tax rate +$ state capital gain tax   EQUALS TOTAL TAXES DUE STEP 4. Calculate Equity $ sales price -$ costs of sale -$ loan balances   EQUALS GROSS EQUITY -$ capital gain taxes due   EQUALS AFTER-TAX EQUITY

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