Real Estate Calculators - Forecast Of (Rental) Property

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 Balance (First) - This is the remaining outstanding balance on your first mortgage. 

Mortgage Balance (Second) - This is the remaining outstanding balance on your second mortgage. 

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.

Ordinary Income Tax - This would be an estimate of your ordinary income tax rate. 

Depreciation Recapture Federal Tax Rate - This figure is used to determine the amount of federal taxes due as a percentage of any depreciation recaptured on the sale of the property. It is up to you to determine the tax rate that would apply to you.  

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.  

Building Value - The cost associated with the building as part of the purchase price of real estate.  This is for depreciation purposes. Land is not a depreciable asset and needs to be separated from the purchase price of real property for tax purposes.

Accumulated Depreciation - This would be the depreciation that was taken on the property in any of the previous years up to and including through the time of sale. Depreciation must be recaptured and taxed at the federal, state and sometimes the local level. In most instances the federal depreciation recapture tax rate is 25% and the depreciation recapture is taxed at the state and local level using your state and local ordinary income tax rates.

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

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

Building Value - Initial Building Value will be added with Rehab Costs to determine an improved building value for accumulated depreciation purposes. This calculator assumes that you use a 27.5 year straight line method of depreciation. (Building Value + Rehab Costs)/27.5. Purchase price is not used to calculate accumulated depreciation, since purchase price includes land value which is not a depreciable asset.