Real Estate Calculators - Forecast Of (Primary Residence) Property
(not-yet-acquired)

Current Value - This is the market value, the appraisal value or the estimated price the property would sell for in market.

Purchase Price - This is the price the property was purchased for and is used to establish a basis for the property.

Rehab Costs - If there were any major improvements that could be added to the basis such as rehab costs then you should add this to your rehab costs. It is up to you to determine whether the improvements are allowable additions to your property basis based on IRS code.

Mortgage Amount (First) - This is the original balance on your first mortgage in the purchase of the property. 

Mortgage Amount (Second) - This is the original balance on your second mortgage in the purchase of the property. 

Federal Capital Gains Tax - This figure is used to determine the amount of federal taxes due as a percentage of any gain on the sale of the property after any allowable tax exclusion. 

State Capital Gains Tax - This figure is used to determine the amount of state taxes due as a percentage of any gain on the sale of the property after any allowable tax exclusion. 

Will you qualify for the $250,000/$500,000 capital gains tax exclusion? - This should indicate whether you qualify for an exclusion on any gain you have on the sale of the property. If you indicate that you qualify for the federal exclusion, this model assumes that 1) your state allows for the exclusion and 2) you would be eligible for the state exclusion as well. 

How much of an exclusion will you get? - In summary the IRS allows an exclusion of up to $250,000 for single individuals and $500,000 for married couples filing jointly on the sale of a principle residence subject to certain requirements. The exclusion can usually be claimed only once every two years. In order to qualify you must have owned and lived in the residence (as your primary residence) for two of the last five years before the sale. The tax law provides for an exemption of the two year rules for use and ownership, when the primary reason for the sale is health, change in place of employment, or “unforeseen circumstance” as defined or determined by IRS regulation. It is recommended that you read the tax code and speak with a tax specialist.

Annual Appreciation / Depreciation of Asset - This represents the yearly increase / decrease applied to the value of the property as a percent.

Real Estate Commission - This is the real estate commission that you anticipate paying.

NII Tax (Net Investment Income Tax) - This a federal tax and is used to determine the amount of federal taxes as a result of the Federal Net Investment Income Tax (NII).  The federal NII tax rate is typically 3.85% and is applied to any gain after any allowable exclusion.  This is a very complicated tax and there are certain income thresholds that may apply so it would be advisable to speak to a tax specialist.

Transfer Tax - This figure is the state and local transfer tax and is applied to the current value of the property.