CALCULATING CAPITAL GAIN

CALCULATING CAPITAL GAIN

"Analyze the Benefits of an Exchange before You Sell"

1. CALCULATE NET ADJUSTED BASIS Original Purchase Price __________
+ Improvements __________
- Depreciation __________
= NET ADJUSTED BASIS __________

2. CALCULATE CAPITAL GAIN Sales Price __________
- Net Adjusted Basis __________
- Cost of Sale __________
= CAPITAL GAIN __________

3. CALCULATE CAPITAL GAIN TAX DUE Recaptured Deprection (25% ) __________
+ Federal Capital Gain (15%) __________
+ State Tax (when applicable) __________
= TOTAL TAX DUE __________

4. ANALYZE PURCHASE-NO EXCHANGE Sales Price __________
- Cost of Sale __________
- Loan Balances __________
= GROSS EQUITY __________
- Capital Gain Taxes Due __________
= NET EQUITY __________

Net Equity X 4 = __________

5. ANALYZE PURCHASE-EXCHANGE Capital Gain Taxes Due _____0____
Gross Equity = Net Equity __________
Gross Equity x 4 = __________