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| REAL ESTATE CALCULATORS(More Info) | |
Example Report |
You have selected to determine the outcome from the sale of a part rental / part non rental property which could be your primary residence as well as contain several rental units. This model / calculator will help you determine the tax consequences of selling your part rental / part non rental property and the net proceeds after 1) deducting your first and second mortgages, 2) deducting any possible capital gains taxes 3) deducting any real estate broker fees and 4) deducting any depreciation recapture taxes. In order to determine any capital gains taxes you need to determine your cost basis and whether you will qualify for a capital gains tax exclusion for the non rental portion of the property. Now click "Go" and you will be prompted to input the appropriate information. Once you have input the appropriate information, click "submit" for the results. If you would prefer to determine the same results solely for a rental property or non rental property, then click "sale of real estate" from the above menu. This will take you to a drop down menu where you can select your desired property classification. |
Try It : |
The below calculator / model is applicable to small investors that are considering selling a multi family property that is part rental and part non rental property. This calculator / model separates out the rental portion of the property from the non rental portion of the property. It will apply different tax considerations to the rental portion and non rental portion in deriving the net proceeds from a sale. |
PROCEEDS FROM SALE |
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(Con-solidated) (c)(d) 100% |
(Non-Rental) (a)(d) 25% |
(Rental) (b)(d) 75% |
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Value
|
500,000 |
125,000 |
375,000 |
Mortgage (First) |
230,000 |
57,500 |
172,500 |
Mortgage (Second) |
20,000 |
5,000 |
15,000 |
Equity
|
250,000 |
62,500 |
187,500 |
R.E. Brokers Fees @ 4.50%
|
22,500 |
5,625 |
16,875 |
Proceeds After Mort. and RE Fees
|
227,500 |
56,875 |
170,625 |
Total Estimated Deferred Tax Liab.(d)
|
39,182 |
4,233 |
34,949 |
Net Proceeds After Taxes
|
188,318 |
52,642 |
135,676 |
PROPERTY BASIS |
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(Con-solidated) 100% |
(Non-Rental) (j) 25% |
(Rental) (k) 75% |
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Value
|
500,000 |
125,000 |
375,000 |
Less Cost Basis (Purchase Price) |
380,000 |
95,000 |
285,000 |
Less Cost Basis (Rehab Costs)
|
20,000 |
5,000 |
15,000 |
Less R.E. Brokers Fees @ 4.50% |
22,500 |
5,625 |
16,875 |
LT Capital Gain/Loss
|
77,500 |
19,375 |
58,125 |
Reduced By Any Exclusion |
0 |
0 |
N/A |
Taxable Gains After Any Exclusion
|
77,500 |
19,375 |
58,125 |
Acc. Depr. |
75,000 |
N/A |
75,000 |
DEFERRED TAXES |
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(Con-solidated) 100% |
(Non-Rental) (l) 25% |
(Rental) (m) 75% |
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Fed. LT Capital Gains Tax @ 15.00% |
11,625 |
2,906 |
8,719 |
State Capital Gains Tax @ 6.85% |
5,309 |
1,327 |
3,982 |
Fed. Depr. Recapture @ 25.00% |
18,750 |
N/A |
18,750 |
State Depr. Recapture @ 6.85% |
5,137 |
N/A |
5,137 |
Total Estimated Deferred Tax Liab. Before Adj. For Any Loss Carryforward |
40,821 |
4,233 |
36,588 |
Loss Carryforward |
(n)
|
N/A |
-7,500 |
Estimated Offset To Tax Liab. Due To Loss Carryforward @ (15.00% + 6.85%) |
(n)
|
N/A |
-1,639 |
Total Estimated Deferred Tax Liab. |
(n)
|
4,233 |
34,949 |
| Analytical Finances, Inc. Contents © 2005 - 2007 |
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