Mortgage Balance | $1,000,000 |
Year Purchased | 2000 |
Sales Price | $4,000,000 |
Selling Expenses | $40,000 |
Total Selling Expenses | $240,000 |
Net Sales Proceeds | $3,760,000 |
Cost Basis | $250000 |
Cost of Improvements | $100000 |
Depreciation | $133,636 |
Net Adjusted Basis | $216,364 |
Taxable Gain | $3,543,636 |
Homeowner’s Exclusion | |
Total Subject to Tax | $3,543,636 |
Depreciation | Residential | Commercial |
Cost Basis | $250000 | $250000 |
Depreciable Amt (70%) | $175,000 | $175,000 |
Annual Depreciation | $6,364 | $6,410 |
Year of Purchase | $2000 | $2000 |
Years Owned | 21 | 19 |
Depreciation taken to date | $133,636 | $120,909 |
Federal Tax Calculation | Value |
Taxable Gain | $3,543,636 |
Tax Rate 20% (0.20) | 0.2 |
Federal Cap Gains Due | $708,727 |
State Tax Calculation | Value |
Net Sales Proceeds | $3,760,000 |
Net Adjusted Basis | $216,364 |
Taxable Gain | $3,543,636 |
Homeowners Exclusion | |
Taxable Gain | 3,543,636 |
CA 13.3% | 0.133 |
State Tax Due | $471,304 |
Net Investment Income Tax | Value |
Taxable Gain | $3,543,636 |
200,000 OR 250,000 | 200,000 |
Taxable Amount | $3,343,636 |
Tax Rate | 0.038 |
Total | $127,058 |
Debt over basis tax? | Value |
Existing Mortgage minus Adj. Basis | $750,000 |
Possible additional tax | $147,000 |
Total Tax Bill | 1,460,771 |
Projected Tax Bill | Value |
Federal | $708,727 |
State | $471,304 |
NIIT | $127,058 |
Depreciation Recapture 25% | $6,682 |
Total Tax Bill | $1,313,771 |
% of Profit to Taxes |