{"id":2907,"date":"2022-07-04T06:42:00","date_gmt":"2022-07-04T06:42:00","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=2907"},"modified":"2022-11-04T11:27:34","modified_gmt":"2022-11-04T11:27:34","slug":"real-estate-capital-gains-calculator","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/real-estate-capital-gains-calculator\/","title":{"rendered":"Real Estate Capital Gains Calculator"},"content":{"rendered":"\n<p>This real estate capital gains calculator should be used to estimate the capital gains tax you may pay if you sell your home or land or any other <a href=\"https:\/\/www.irstaxapp.com\/question\/question\/what-is-a-capital-asset\/\">capital asset<\/a>. Based on your input, the real estate capital gains calculator computes both short-term capital gains and long-term capital gains tax. Apart from federal income tax, the capital gains calculator also computes the state tax on capital gains. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d9920d98e6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d9920d98e6\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/real-estate-capital-gains-calculator\/#2022_Real_Estate_Capital_Gains_Calculator\" title=\"2022 Real Estate Capital Gains Calculator \">2022 Real Estate Capital Gains Calculator <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/real-estate-capital-gains-calculator\/#Capital_Gains_Exclusion_us_121\" title=\"Capital Gains Exclusion u\/s 121\">Capital Gains Exclusion u\/s 121<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/real-estate-capital-gains-calculator\/#Sale_Amount\" title=\"  Sale Amount\">  Sale Amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/real-estate-capital-gains-calculator\/#Reporting_the_Sale_on_1099-S_and_on_Form_8949\" title=\"Reporting the Sale on 1099-S and on Form 8949\">Reporting the Sale on 1099-S and on Form 8949<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2022_Real_Estate_Capital_Gains_Calculator\"><\/span>2022 Real Estate Capital Gains Calculator <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.irstaxapp.com\/2022-tax-brackets\/\">capita gains tax rate for 2022<\/a> is applied for computing taxes.<\/p>\n\n\n\n<style amp-boilerplate=\"\">body{-webkit-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-moz-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-ms-animation:-amp-start 8s steps(1,end) 0s 1 normal both;animation:-amp-start 8s steps(1,end) 0s 1 normal both}@-webkit-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-moz-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-ms-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-o-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}<\/style><noscript><style amp-boilerplate=\"\">body{-webkit-animation:none;-moz-animation:none;-ms-animation:none;animation:none}<\/style><\/noscript>\n    <script async=\"\" src=\"https:\/\/cdn.ampproject.org\/v0.js\"><\/script>\n  <script async=\"\" custom-element=\"amp-iframe\" src=\"https:\/\/cdn.ampproject.org\/v0\/amp-iframe-0.1.js\"><\/script>\n  \n  \n  \n  <amp-iframe width=\"300\" height=\"600\" layout=\"responsive\" sandbox=\"allow-scripts allow-same-origin\" src=\"https:\/\/gsheetpress.com\/calculator?id=1625904294220\">\n<amp-img layout=\"fill\" src=\"https:\/\/foo.com\/foo.png\" placeholder=\"\"><\/amp-img>\n<\/amp-iframe>\n\n\n\n<p>The aforesaid calculator can also be used as<strong><em> capital gains tax calculator on sale of primary residence<\/em><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Gains_Exclusion_us_121\"><\/span>Capital Gains Exclusion u\/s 121<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The real estate capital gains calculator automatically decides upon the eligibility of exclusion of capital gains under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/121\" target=\"_blank\" rel=\"noopener\">section 121 of the Internal Revenue Code <\/a>.As you know, you are eligible  for the Section 121 exclusion on the following two conditions :<\/p>\n\n\n\n<ul><li> If you have owned and <\/li><li>Used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods.<\/li><\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f7d9b6\">Readers should note that two years conditions can be satisfied within a 5-year period ending on the date of the sale. Generally, you&#8217;re not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to&nbsp;Publication 523&nbsp;for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule. Apart from the exemption of long term capital gains u\/s 121 , there is an exclusion rule under section 1031, popularaly known as <a href=\"https:\/\/www.irstaxapp.com\/section-1031-change-that-will-affect-you\/\">1031 exchange<\/a> rule<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.png\" height=\"32\" width=\"32\" class=\"wp-image-2930 sp-no-webp\" alt=\"\" decoding=\"async\" loading=\"lazy\" style=\"width: 32px;\"  > <\/picture> Sale Amount<\/h2>\n\n\n\n<p> The property&#8217;s sale value is the aggregate of the sales consideration plus certain benefits or receipts that a seller gets. <\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#d4e6ee\"><strong>Sales consideration received      <\/strong>                                                                                    <strong> xxxxxxx<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">ADD<\/h4>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#d4e6ee\">(i)The fair market value of any other property or services associated with the capital assets    <strong>xxxxxx<\/strong><br> (ii)The value of any notes, mortgages, or other debts that the buyer agreed to assume (take over) as part of the sale                                                                                                                    <strong>       xxxxxxx<\/strong><br> (iii)Any real estate taxes the buyer paid on your behalf                                                           <strong> xxxxxx<\/strong><br> (iv)Any amount you received for granting an option to buy your home,                               <span style=\"text-decoration: underline;\"> <strong> xxxxxxx<\/strong><\/span><\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#adc8d3\"><strong>(A)  <\/strong>       <strong> <\/strong>Sale price that should <strong>be filling in input field of calculator       <\/strong>                       <strong>   xxxxxxx<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.png\" height=\"32\" width=\"32\" class=\"wp-image-2930 sp-no-webp\" alt=\"\" decoding=\"async\" loading=\"lazy\" style=\"width: 32px;\"  > <\/picture>Closing Costs or Selling Expense <\/h3>\n\n\n\n<p>The following expenses related to the sold capital asset are considered Closing Costs or selling expense. These are deductible while computing capital gains.<\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#f5f3d1\">(i)Any sales commissions                                      <strong>xxxxx<\/strong><br>(ii) Any advertising fees                                         <strong>xxxxx<\/strong><br> (iii) Any legal fees                                                 <strong>xxxx<\/strong>x<br> (iv) Any mortgage or other loan charges you paid that would normally have been the buyer\u2019s responsibility                                                      <strong>  Xxxxx<\/strong><br> ((iv)Any other fees or costs to sell your home    <strong>xxxxx<\/strong><br> (A) Total Closing Cost (Selling Expense.          <strong>   xxxxx<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.png\" height=\"32\" width=\"32\" class=\"wp-image-2930 sp-no-webp\" alt=\"\" decoding=\"async\" loading=\"lazy\" style=\"width: 32px;\"  > <\/picture>B. Other Costs related to property<\/h3>\n\n\n\n<p>There may be many other costs associated with the property that an owner-seller might have incurred. These are allowed to be reduced from the sales proceedings <\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#e1f9cd\">(i)Settlement fees or closing costs                                                                xxxx<br>(ii)Real estate taxes or other costs you paid                                                  xxxx<br>(iii) Any amounts you spent on the construction or other improvements     xxxx<br> (iv)Any amounts you spent to repair damage to your home or the land on which it sits    xxxx<br> (v) Any special assessments for local improvements                                 xxxx<br> <strong>(B)Total of Other Costs                                                                           xxxxx<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">C. Adjustments to Costs (Basis)<\/h4>\n\n\n\n<p>Following adjustments (reduction ) to your <strong>other cost <\/strong>must be done. If any of the following benefits have occurred to you, aggregate them and reduce it from <strong>Other Cost<\/strong>. <\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#fdf8f1\">(i)Any casualty losses (such as flood or fire damage) you claimed as a deduction on a federal tax return    xxxxx<br> (ii)Any insurance payments you received or expect to receive for casualty losses                                         xxxxx   <br> (iii)Any payments you received for granting an easement, conservation restriction, or right-of-way           xxxxxx<br> (iv)Any energy credits or subsidies that effectively paid you back and you included in your total basis       xxxxx<br> (v)Any adoption credits you claimed or got under an employer-sponsored adoption assistance program    xxxxx<br> (vi)Any real estate taxes the seller paid on your behalf (and for which you never paid the seller back).        xxxxxx<br> (vii) Any mortgage points the seller paid for you when you bought your home                                            xxxxx<br> (viii)Any cancelled or forgiven mortgage debt amount that was excluded before January 1, 2018, due to a bankruptcy or insolvency and that you didn\u2019t have to declare as income                                                                              xxxxxx<br> (ix) Any sales tax you paid on your home (such as for a mobile home or houseboat) and then claimed as a deduction on a federal tax return                                                                                                                                             xxxxxxx<br> (x)The value of any temporary housing the builder of your home provided for you                                       xxxxxx<br> (xi)Any gain you postponed from the sale of a previous home sold before May 7, 1997                                xxxxxx<br> (C) Total of the cost that needs to be adjusted( adjusted basis)                                                                      xxxxx<\/p>\n\n\n\n<p class=\"has-background has-medium-font-size\" style=\"background-color:#fdec54\"> <picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2020\/02\/icon-1.png\" height=\"32\" width=\"32\" class=\"wp-image-2930 sp-no-webp\" alt=\"\" decoding=\"async\" loading=\"lazy\" style=\"width: 32px;\"  > <\/picture><strong> Costs after Adjustments = Other costs -adjustment to costs (B-C)<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Depreciation recapture <\/h3>\n\n\n\n<p><strong>Capital gains tax calculator on sale of rental property<\/strong> must account for depreciation capture because when you rent the property, you reduce the depreciation from the gross rental income while computing tax. IRS imposes depreciation recapture tax if you had claimed depreciation on the property in the past. Please read the small FAQ on <a href=\"https:\/\/www.irstaxapp.com\/question\/what-is-depreciation-recapture-2903\/\">what is depreciation recapture.<\/a> The IRS taxes capital gains on the sale or transfer of rental property a little different than the property which was not used for rental. The  <strong>capital gains tax calculator on sale of rental property<\/strong> must there account for following two taxes<\/p>\n\n\n\n<ul class=\"has-medium-font-size\"><li>Capital gains tax rate of 0%, 15%, or 20% depending on filing status and taxable income<\/li><li>Depreciation recapture tax rate of 25%<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reporting_the_Sale_on_1099-S_and_on_Form_8949\"><\/span>Reporting the Sale on 1099-S and on Form 8949<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If there is any capital gains profit after the exclusion under section 121 , a legal obligation is cast upon <strong>the closing agent <\/strong>to report the sale on the <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-1099-s\" target=\"_blank\" rel=\"noopener\"><strong>Form 1099-S<\/strong>,<strong>Proceeds From Real Estate Transactions.<\/strong><\/a> Once , you as a seller of your main home , you get 1099-S from closing agent , you need to report the sale or exchange of your main home on <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f8949.pdf\" target=\"_blank\" rel=\"noopener\">Form 8949<\/a>, Sale and Other Dispositions of Capital Assets, if:<\/p>\n\n\n\n<ul><li>You have a gain and do not qualify to exclude all of it,<\/li><li>You have a gain and choose not to exclude it, or<\/li><li>You&nbsp;received a Form 1099-S.<\/li><\/ul>\n\n\n\n<p>Hope you find the<strong><em> real estate capital gains calculator <\/em><\/strong>useful!<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This real estate capital gains calculator should be used to estimate the capital gains tax you may pay if you sell your home or land or any other capital asset. Based on your input, the real estate capital gains calculator computes both short-term capital gains and long-term capital gains tax. Apart from federal income tax, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8,3],"tags":[3830,3831,3833],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2907"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=2907"}],"version-history":[{"count":4,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2907\/revisions"}],"predecessor-version":[{"id":5800,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2907\/revisions\/5800"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/4804"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=2907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=2907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=2907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}