Calculate federal capital gains tax when selling rental property -- depreciation recapture, LTCG rate, NIIT -- vs deferring with a 1031 exchange.
📍 Property Address (optional)
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InputsYour Numbers
Sale Details
Sale Price?
$
Selling Costs?
$
Cost Basis
Original Purchase Price?
$
Capital Improvements?
$
Years Owned?
Depreciation
Accumulated Depreciation?
$
Your Tax Situation
Taxable Income (without sale)?
$
Filing Status
Pro Forma: 1031 Exchange Target
Replacement Property Price?
$
Replacement Down Payment %?
%
Replacement Rate %?
%
Replacement Monthly Rent?
$
As-Is AnalysisCurrent
Enter values to see results
Total Tax Due
--
fed only, est
Net Proceeds
--
after tax & costs
Capital Gain
--
long-term
Effective Tax Rate
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on total gain
Gain Calculation
Sale Price--
Selling Costs--
Net Sale Proceeds--
Original Purchase Price--
Capital Improvements--
Less: Accumulated Depr.--
Adjusted Cost Basis--
Total Gain--
Tax Breakdown
Depreciation Recapture (25%)--
LT Capital Gains Rate--
LT Capital Gains Tax--
NIIT (3.8% if applicable)--
Total Federal Tax (est)--
Net After-Tax Proceeds--
Pro FormaAfter Plan
Enter pro forma values
Tax Deferred
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via 1031 exchange
Capital Reinvested
--
full sale proceeds
New Monthly CF
--
replacement property
Leverage Gain
--
larger asset basis
1031 Exchange vs Selling
Tax if You Sell Now--
Tax if You 1031$0 deferred
Immediate Tax Savings--
Capital Available to Reinvest--
Replacement Property Analysis
Replacement Price--
Down Payment--
Monthly Mortgage--
Est. Monthly Cash Flow--
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1
Enter Sale Price & Costs
Input sale price and selling costs (commissions + closing). Selling costs reduce your taxable gain dollar for dollar.
2
Enter Your Cost Basis
Original purchase price plus capital improvements. Depreciation REDUCES your basis -- that's why it gets recaptured at sale.
3
Enter Accumulated Depreciation
Every year you claimed depreciation reduced your basis. At sale, that amount is recaptured at 25%. Use: (price - land) / 27.5 x years.
4
Enter Your Income
Your taxable income determines the long-term capital gains rate (0%, 15%, or 20%). Most investors in the middle income range pay 15%.
5
Review the Tax Breakdown
Tax = depreciation recapture + capital gains + NIIT. Each has a different rate. The total is often surprising -- especially for properties held a long time.
6
Compare the 1031 Option
Enter a replacement property to see how much tax you defer and what your new cash flow looks like. Often the 1031 is the clear winner.
Selling a rental property triggers several types of tax: depreciation recapture (25% on all depreciation claimed), long-term capital gains (0/15/20% depending on income), and potentially NIIT (3.8% on net investment income over $200K/$250K).
The surprise for many investors: even if the property hasn't appreciated much, substantial depreciation recapture can mean a large tax bill. A property bought for $300K that's been depreciated for 10 years has a basis reduction of about $73K -- that's $18K in recapture tax at 25% regardless of sale price.
The 1031 exchange defers ALL of these taxes by reinvesting into a 'like-kind' replacement property. The 45-day identification window and 180-day closing requirement make planning critical.