Calculating Capital Gains

Investor · Chicago, IL · Member since 2014 · 169 posts · 29 votes

Hello everyone,

I was wondering if anyone can help me figure out what I would pay in capital gains on a multifamily property that I owner occupy. I am just wanting to explore all options if I sell and one of them being to sell and be done with investing in real estate. I am able to find calculators online for capital gains on single family homes or rentals but nothing on how to figure out breaking down what it would be for a multifamily property that is owner occupied. Any help would be much appreciated.

Thanks in advance,

Tim

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Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

Find the last guy that asked this yesterday for detailed explanation but rough estimate…

Assuming 4 plex, and assuming you owner occupied since day 1 of ownership.

Approximately 75% of 15% of the gain (selling price minus selling cost minus purchase price minus any un-depreciated capex). Plus 25% of the depreciation you’ve taken since purchasing, plus how ever much of a handout your state wants.

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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y
Depends on your tax bracket. Budget for %30
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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
Find the last guy that asked this yesterday for detailed explanation but rough estimate…
Assuming 4 plex, and assuming you owner occupied since day 1 of ownership.
Approximately 75% of 15% of the gain (selling price minus selling cost minus purchase price minus any un-depreciated capex). Plus 25% of the depreciation you’ve taken since purchasing, plus how ever much of a handout your state wants.
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Alexander Szikla
Real Estate Agent · New York City · Member since 2020 · 820 posts · 641 votes
4y
Folks are forgetting about the capital gains tax exemption for personal property lived in for the last two of the last five years. If you are single, you get an exemption of $250,000. If you are married, it is $500,000.
If you can provide insight on how long you have owned the property, how much it was purchased for and your estimated sales price - a more precise figure can be provided.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
4y
Capital gains tax rates are 0% 15% or 20% at the federal level.
There is also a 3.8% Net Investment Income tax on capital gains depending on your income level.

Don't forget state income tax rates depending on where you live or where the property is located at.

Living in the property may allow you to decrease your capital gain.
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