Properties
5
in portfolio
Total FMV
$2,515,000
$1,682,000 equity
Total Debt
$833,000
33% LTV
Net Cash Flow / Yr
$36,100
after all expenses + debt service
Tax Benefit / Yr
$4,564
depreciation tax shield
Total Economic Return
$40,664
2.4% on equity
Portfolio Composition
Visualize concentration by class, entity, or property type
Fair Market Value: $2,515,000 · across 5 properties · 2 asset classes
Real Estate Professional (REP)
750+ hours/yr in real estate AND more than 50% of your personal services. ALL rental losses deduct against any income — W-2, business, anything. No dollar cap.
IRC §469(c)(7)
Active Participant
You actively participate (approve tenants, set terms) but don't meet REP hours. Up to $25,000 of losses allowed against ordinary income. Phases out $100k–$150k AGI (Single/MFJ). Zero above $150k.
IRC §469(i)
Passive Investor
Losses only offset other passive income (other rental profits, passive business interests). Excess losses are suspended and carried forward — released when you sell the property or generate passive income.
IRC §469
⚖ Portfolio Tax Settings
Hurdle Rate (Dead Equity)
?
% / yr
Default Investor Status
Filing Status
AGI (phase-out $100k–$150k)
Other Passive Income / Yr
Portfolio Passive Loss
$12,336
Allowed Deduction
$0
Suspended (Carryforward)
$0
Property Analysis
Showing 5 of 5 · Grouped by Asset Class · Sorted within each by urgency · 💡 10 tax planning suggestions pending
Residential Real Estate4 properties
FMV$1,775,000
Equity$1,322,000
Debt$453,000
Cash Flow$24,100
Tax Benefit$4,564
▾Residential Real Estate
ResidentialActive
Maple St Rental
123 Maple St — Single Family · Long-Term Residential Rental · In service 2015-05-01 · 11.1 yrs held
FMV $520,000 · Equity $425,000⟳ 1031 Exchange▾
Basis & Equity
✓ Using detailed cost-seg basis from Sale Scenario below
Purchase Price$280,000
+ Improvements$45,000
− Accum. Depreciation($82,000)
Adjusted Basis$243,000
Fair Market Value$520,000
Loan Balance($95,000)
Equity$425,000
LTV Ratio18.3%
Unrealized Gain$277,000
Years Held11.1
Cash Flow Analysisactual cash
Gross Rental Income$28,800
− Operating Expenses($9,600)
= NOI$19,200
Cap Rate (NOI/FMV)3.7%
− Debt Service (P+I)($12,400)
Net Cash Flow / Yr$6,800
Cash-on-Cash Return1.6%
Tax Benefit Analysistax paper
Gross Rental Income$28,800
− Operating Expenses($9,600)
− Mortgage Interest($4,200)
− Depreciation($11,727)
Taxable Income / (Loss)$3,273
Tax Rate Applied37%
Tax Benefit / Savings$0
Depreciation Runway
37% exhausted · 27.5yr life17 yrs left
Recommendation
1031 Exchange
Equity Yield1.6%
Hurdle: 6%w/ appr: 5.3%
- Equity yield below 3% — significant dead equity problem
- 1031 into higher cap-rate asset unlocks trapped value
"Long-term hold, minimal debt"
Passive Activity Loss (IRC §469)
Active ParticipantParticipation status for this property:
Participation status: Active Participant
Paper Loss / Yr
None
Passive Income / Yr
$3,273
Allowed Deduction
—
Suspended (Carryforward)
—
This property produces $3,273/yr of taxable income (no current passive loss).
Active Participant (IRC §469(i)) Up to $25,000 of rental losses allowed against ordinary income. Phases out $0.50 per $1 above the AGI threshold for your filing status. Excess losses suspended §469.
Economic Return: This property generates a total economic return of $22,400/yr ($6,800 net cash flow + $15,600 appreciation), a 1.6% yield on its $425,000 of equity.
Dead Equity Gap: At a 6% hurdle rate, this equity should earn $25,500/yr but is falling $18,700/yr short. The trapped capital could work harder elsewhere — a prime 1031-exchange or repositioning candidate.
Maple St Rental — Sale ScenarioResidential Real Estate
Sale Scenario Analysis✓ ConfiguredSales Price $450,000 · Tax $45,900 · Net After Tax $284,100
▾Asset Cost Basis by Depreciation Class
✓ Detailed basis active — overrides simple basis in hold analysis above
| Asset Class | Initial Cost | Accum. Depreciation | §1245 / §1250 Treatment |
|---|---|---|---|
| 27.5yr Residential Bldg | $280,000 | $37,000 | $37,000 §1250 unrec. |
| 39yr Commercial Bldg | $0 | $0 | — §1250 unrec. |
| 15yr Land Improvements | $45,000 | $45,000 | $45,000 §1245 ord. |
| 10yr Property | $0 | $0 | — §1245 ord. |
| 7yr Property | $0 | $0 | — §1245 ord. |
| 5yr Property | $0 | $0 | — §1245 ord. |
| Land | $0 | — | Not depr. |
| Acquisition / Loan Costs | $0 | $0 | — §1245 ord. |
| TOTALS | $325,000 | $82,000 | §1245: $45,000 §1250: $37,000 |
Sale Parameters
Sales Price ($)
$450,000Selling / Closing Costs ($)
$25,000Loan Payoff ($)
$95,000Tax Rates Applied
§1245 / Ordinary Rate (%)
37%§1250 Unrecaptured Rate (%)
25%LT Capital Gain Rate (%)
20%§1245: 5/7/10/15yr personal property + loan costs — taxed as ordinary income. §1250 Unrecaptured (max 25%): 27.5/39yr building depreciation. Remaining gain: long-term capital gains rate. Tip: suspended passive losses released on sale can offset recapture.
Maple St Rental — Gain & Tax WaterfallProperty Analysis
Gain & Tax Waterfall
Total Cost Basis$325,000
Less: Accum. Depreciation$82,000
Adjusted Basis$243,000
Sales Price$450,000
Less: Selling Costs$25,000
Less: Adjusted Basis$243,000
Total Gain on Sale$182,000
§1245 Recapture — 5/7/10/15yr + costs (@ 37%)$45,000
Tax on §1245$16,650
§1250 Unrecaptured — 27.5/39yr bldg dep (@ 25%)$37,000
Tax on §1250$9,250
LT Capital Gain (@ 20%)$100,000
Tax on Gain$20,000
Total Tax Liability$45,900
Cash from Sale$450,000
Less: Selling Costs$25,000
Less: Loan Payoff$95,000
Net Cash Before Tax$330,000
Less: Total Tax$45,900
Net Cash After Tax$284,100
Sale Appears Justified — Tax Cost Is Manageable
The property is underperforming (equity yield 1.6% vs. 6% hurdle) and the after-tax net of $284,100 is a reasonable exit. Tax consumes 25% of gain, leaving capital that can work harder elsewhere.
Total Tax Bill
$45,900
Tax % of Gain
25%
Net After Tax
$284,100
Income Yield Needed ?
2.4%/yr
Current Equity Yield
1.6%
Total Return (w/ Appr)
5.3%
- After-tax net $284,100 available for redeployment
- Staying earns $6,800/yr cash + $0/yr tax + $15,600/yr appr = $22,400/yr (5.3% on $425,000 equity)
- Proceeds of $284,100 must earn 2.4%/yr to match current total return
Residential Real Estate
ResidentialPassive
River View Duplex
88 River Rd — Duplex · Multifamily / Apartment Building · In service 2002-08-01 · 23.8 yrs held
FMV $310,000 · Equity $292,000⟳ 1031 Exchange▾
Basis & Equity
Purchase Price$190,000
+ Improvements$22,000
− Accum. Depreciation($77,000)
Adjusted Basis$135,000
Fair Market Value$310,000
Loan Balance($18,000)
Equity$292,000
LTV Ratio5.8%
Unrealized Gain$175,000
Years Held23.8
Cash Flow Analysisactual cash
Gross Rental Income$18,000
− Operating Expenses($9,200)
= NOI$8,800
Cap Rate (NOI/FMV)2.8%
− Debt Service (P+I)($3,600)
Net Cash Flow / Yr$5,200
Cash-on-Cash Return1.8%
Tax Benefit Analysistax paper
Gross Rental Income$18,000
− Operating Expenses($9,200)
− Mortgage Interest($900)
− Depreciation($7,709)
Taxable Income / (Loss)$191
Tax Rate Applied37%
Tax Benefit / Savings$0
Depreciation Runway
51% exhausted · 27.5yr life14 yrs left
Recommendation
1031 Exchange
Equity Yield1.8%
Hurdle: 6%w/ appr: 3.4%
- Equity yield below 3% — significant dead equity problem
- 1031 into higher cap-rate asset unlocks trapped value
"Near fully paid off, minimal returns"
Passive Activity Loss (IRC §469)
Passive InvestorParticipation status for this property:
Participation status: Passive Investor
Paper Loss / Yr
None
Passive Income / Yr
$191
Allowed Deduction
—
Suspended (Carryforward)
—
This property produces $191/yr of taxable income (no current passive loss).
Passive Investor (§469) Losses ONLY offset other passive income. Net passive losses are suspended and carried forward until you have passive income to absorb them, or you fully dispose of the property.
Economic Return: This property generates a total economic return of $9,850/yr ($5,200 net cash flow + $4,650 appreciation), a 1.8% yield on its $292,000 of equity.
Dead Equity Gap: At a 6% hurdle rate, this equity should earn $17,520/yr but is falling $12,320/yr short. The trapped capital could work harder elsewhere — a prime 1031-exchange or repositioning candidate.
River View Duplex — Sale ScenarioResidential Real Estate
Sale Scenario AnalysisNot configured
▾Asset Cost Basis by Depreciation Class
Enter cost by class below, or click Sync to pre-fill from property data
| Asset Class | Initial Cost | Accum. Depreciation | §1245 / §1250 Treatment |
|---|---|---|---|
| 27.5yr Residential Bldg | $0 | $0 | — §1250 unrec. |
| 39yr Commercial Bldg | $0 | $0 | — §1250 unrec. |
| 15yr Land Improvements | $0 | $0 | — §1245 ord. |
| 10yr Property | $0 | $0 | — §1245 ord. |
| 7yr Property | $0 | $0 | — §1245 ord. |
| 5yr Property | $0 | $0 | — §1245 ord. |
| Land | $0 | — | Not depr. |
| Acquisition / Loan Costs | $0 | $0 | — §1245 ord. |
| TOTALS | $0 | $0 | §1245: — §1250: — |
Sale Parameters
Sales Price ($)
$0Selling / Closing Costs ($)
$0Loan Payoff ($)
$0Tax Rates Applied
§1245 / Ordinary Rate (%)
37%§1250 Unrecaptured Rate (%)
25%LT Capital Gain Rate (%)
20%§1245: 5/7/10/15yr personal property + loan costs — taxed as ordinary income. §1250 Unrecaptured (max 25%): 27.5/39yr building depreciation. Remaining gain: long-term capital gains rate. Tip: suspended passive losses released on sale can offset recapture.
River View Duplex — Gain & Tax WaterfallProperty Analysis
Gain & Tax Waterfall
Total Cost Basis$0
Less: Accum. Depreciation$0
Adjusted Basis$0
Sales Price$0
Less: Selling Costs$0
Less: Adjusted Basis$0
Total Gain on Sale$0
§1245 Recapture — 5/7/10/15yr + costs (@ 37%)$0
Tax on §1245$0
§1250 Unrecaptured — 27.5/39yr bldg dep (@ 25%)$0
Tax on §1250$0
LT Capital Gain (@ 20%)$0
Tax on Gain$0
Total Tax Liability$0
Cash from Sale$0
Less: Selling Costs$0
Less: Loan Payoff$0
Net Cash Before Tax$0
Less: Total Tax$0
Net Cash After Tax$0
Enter a Sales Price to Get a Sale Recommendation
Fill in the Sales Price above to see whether selling, doing a 1031 exchange, or continuing to hold is recommended based on your after-tax net position.
Residential Real Estate
ResidentialPassive
Westside SFR
512 Oak Ave — Single Family · Long-Term Residential Rental · In service 2022-12-01 · 3.5 yrs held
FMV $680,000 · Equity $340,000⟳ 1031 Exchange▾
Basis & Equity
Purchase Price$420,000
+ Improvements$65,000
− Accum. Depreciation($40,000)
Adjusted Basis$445,000
Fair Market Value$680,000
Loan Balance($340,000)
Equity$340,000
LTV Ratio50.0%
Unrealized Gain$235,000
Years Held3.5
Cash Flow Analysisactual cash
Gross Rental Income$36,000
− Operating Expenses($12,000)
= NOI$24,000
Cap Rate (NOI/FMV)3.5%
− Debt Service (P+I)($28,800)
Net Cash Flow / Yr-$4,800
Cash-on-Cash Return-1.4%
⚠ Negative cash flow — $4,800/yr out of pocket
Tax Benefit Analysistax paper
Gross Rental Income$36,000
− Operating Expenses($12,000)
− Mortgage Interest($18,700)
− Depreciation($17,636)
Taxable Income / (Loss)-$12,336
Tax Rate Applied37%
Tax Benefit / Savings$4,564
Depreciation Runway
12% exhausted · 27.5yr life24 yrs left
Recommendation
1031 Exchange
Equity Yield-0.1%
Hurdle: 6%w/ appr: 7.9%
- Equity yield below 3% — significant dead equity problem
- 1031 into higher cap-rate asset unlocks trapped value
"Recently acquired, high leverage"
Passive Activity Loss (IRC §469)
Passive InvestorParticipation status for this property:
Participation status: Passive Investor
Paper Loss / Yr
$12,336
Passive Income / Yr
—
Allowed Deduction
—
Suspended (Carryforward)
$12,336
This property shows a paper loss of $12,336/yr. None is currently deductible — the full $12,336 is suspended and carried forward under §469 until offset by passive income or full disposition.
Passive Investor (§469) Losses ONLY offset other passive income. Net passive losses are suspended and carried forward until you have passive income to absorb them, or you fully dispose of the property.
Economic Return: This property generates a total economic return of $26,964/yr (-$4,800 net cash flow + $4,564 tax savings + $27,200 appreciation), a -0.1% yield on its $340,000 of equity.
Dead Equity Gap: At a 6% hurdle rate, this equity should earn $20,400/yr but is falling $20,636/yr short. The trapped capital could work harder elsewhere — a prime 1031-exchange or repositioning candidate.
Westside SFR — Sale ScenarioResidential Real Estate
Sale Scenario AnalysisNot configured
▾Asset Cost Basis by Depreciation Class
Enter cost by class below, or click Sync to pre-fill from property data
| Asset Class | Initial Cost | Accum. Depreciation | §1245 / §1250 Treatment |
|---|---|---|---|
| 27.5yr Residential Bldg | $0 | $0 | — §1250 unrec. |
| 39yr Commercial Bldg | $0 | $0 | — §1250 unrec. |
| 15yr Land Improvements | $0 | $0 | — §1245 ord. |
| 10yr Property | $0 | $0 | — §1245 ord. |
| 7yr Property | $0 | $0 | — §1245 ord. |
| 5yr Property | $0 | $0 | — §1245 ord. |
| Land | $0 | — | Not depr. |
| Acquisition / Loan Costs | $0 | $0 | — §1245 ord. |
| TOTALS | $0 | $0 | §1245: — §1250: — |
Sale Parameters
Sales Price ($)
$0Selling / Closing Costs ($)
$0Loan Payoff ($)
$0Tax Rates Applied
§1245 / Ordinary Rate (%)
37%§1250 Unrecaptured Rate (%)
25%LT Capital Gain Rate (%)
20%§1245: 5/7/10/15yr personal property + loan costs — taxed as ordinary income. §1250 Unrecaptured (max 25%): 27.5/39yr building depreciation. Remaining gain: long-term capital gains rate. Tip: suspended passive losses released on sale can offset recapture.
Westside SFR — Gain & Tax WaterfallProperty Analysis
Gain & Tax Waterfall
Total Cost Basis$0
Less: Accum. Depreciation$0
Adjusted Basis$0
Sales Price$0
Less: Selling Costs$0
Less: Adjusted Basis$0
Total Gain on Sale$0
§1245 Recapture — 5/7/10/15yr + costs (@ 37%)$0
Tax on §1245$0
§1250 Unrecaptured — 27.5/39yr bldg dep (@ 25%)$0
Tax on §1250$0
LT Capital Gain (@ 20%)$0
Tax on Gain$0
Total Tax Liability$0
Cash from Sale$0
Less: Selling Costs$0
Less: Loan Payoff$0
Net Cash Before Tax$0
Less: Total Tax$0
Net Cash After Tax$0
Enter a Sales Price to Get a Sale Recommendation
Fill in the Sales Price above to see whether selling, doing a 1031 exchange, or continuing to hold is recommended based on your after-tax net position.
Residential Real Estate
ResidentialActive
condo
Long-Term Residential Rental · In service 2021-01-01 · 5.4 yrs held
FMV $265,000 · Equity $265,000✓ Hold▾
Basis & Equity
✓ Using detailed cost-seg basis from Sale Scenario below
Purchase Price$187,000
+ Improvements$12,000
− Accum. Depreciation($15,000)
Adjusted Basis$184,000
Fair Market Value$265,000
Loan Balance($0)
Equity$265,000
LTV Ratio0.0%
Unrealized Gain$81,000
Years Held5.4
Cash Flow Analysisactual cash
Gross Rental Income$20,400
− Operating Expenses($3,500)
= NOI$16,900
Cap Rate (NOI/FMV)6.4%
− Debt Service (P+I)($0)
Net Cash Flow / Yr$16,900
Cash-on-Cash Return6.4%
Tax Benefit Analysistax paper
Gross Rental Income$20,400
− Operating Expenses($3,500)
− Mortgage Interest($0)
− Depreciation($10,000)
Taxable Income / (Loss)$6,900
Tax Rate Applied22%
Tax Benefit / Savings$0
Depreciation Runway
10% exhausted · 27.5yr life25 yrs left
Recommendation
Hold
Equity Yield6.4%
Hurdle: 6%w/ appr: 9.4%
- Equity yield above 6% hurdle — capital is working
- Appreciation adding to total return
Passive Activity Loss (IRC §469)
Active ParticipantParticipation status for this property:
Participation status: Active Participant
Paper Loss / Yr
None
Passive Income / Yr
$6,900
Allowed Deduction
—
Suspended (Carryforward)
—
This property produces $6,900/yr of taxable income (no current passive loss).
Active Participant (IRC §469(i)) Up to $25,000 of rental losses allowed against ordinary income. Phases out $0.50 per $1 above the AGI threshold for your filing status. Excess losses suspended §469.
Economic Return: This property generates a total economic return of $24,850/yr ($16,900 net cash flow + $7,950 appreciation), a 6.4% yield on its $265,000 of equity.
Dead Equity Gap: This equity is meeting or exceeding the 6% hurdle rate (needs $15,900/yr, earning $24,850/yr). The capital is working efficiently — a reasonable hold.
condo — Sale ScenarioResidential Real Estate
Sale Scenario AnalysisNot configured
▾Asset Cost Basis by Depreciation Class
✓ Detailed basis active — overrides simple basis in hold analysis above
| Asset Class | Initial Cost | Accum. Depreciation | §1245 / §1250 Treatment |
|---|---|---|---|
| 27.5yr Residential Bldg | $199,000 | $15,000 | $15,000 §1250 unrec. |
| 39yr Commercial Bldg | $0 | $0 | — §1250 unrec. |
| 15yr Land Improvements | $0 | $0 | — §1245 ord. |
| 10yr Property | $0 | $0 | — §1245 ord. |
| 7yr Property | $0 | $0 | — §1245 ord. |
| 5yr Property | $0 | $0 | — §1245 ord. |
| Land | $0 | — | Not depr. |
| Acquisition / Loan Costs | $0 | $0 | — §1245 ord. |
| TOTALS | $199,000 | $15,000 | §1245: — §1250: $15,000 |
Sale Parameters
Sales Price ($)
$0Selling / Closing Costs ($)
$0Loan Payoff ($)
$0Tax Rates Applied
§1245 / Ordinary Rate (%)
37%§1250 Unrecaptured Rate (%)
25%LT Capital Gain Rate (%)
20%§1245: 5/7/10/15yr personal property + loan costs — taxed as ordinary income. §1250 Unrecaptured (max 25%): 27.5/39yr building depreciation. Remaining gain: long-term capital gains rate. Tip: suspended passive losses released on sale can offset recapture.
condo — Gain & Tax WaterfallProperty Analysis
Gain & Tax Waterfall
Total Cost Basis$199,000
Less: Accum. Depreciation$15,000
Adjusted Basis$184,000
Sales Price$0
Less: Selling Costs$0
Less: Adjusted Basis$184,000
Total Gain on Sale-$184,000
§1245 Recapture — 5/7/10/15yr + costs (@ 37%)$0
Tax on §1245$0
§1250 Unrecaptured — 27.5/39yr bldg dep (@ 25%)$0
Tax on §1250$0
LT Capital Gain (@ 20%)$0
Tax on Gain$0
Total Tax Liability$0
Cash from Sale$0
Less: Selling Costs$0
Less: Loan Payoff$0
Net Cash Before Tax$0
Less: Total Tax$0
Net Cash After Tax$0
Enter a Sales Price to Get a Sale Recommendation
Fill in the Sales Price above to see whether selling, doing a 1031 exchange, or continuing to hold is recommended based on your after-tax net position.
Commercial Real Estate1 property
FMV$740,000
Equity$360,000
Debt$380,000
Cash Flow$12,000
Tax Benefit$0
▾Commercial Real Estate
CommercialPassive
Downtown Office Condo
400 Commerce Blvd — Commercial · Office / Medical · In service 2018-03-01 · 8.3 yrs held
FMV $740,000 · Equity $360,000✓ Hold▾
Basis & Equity
Purchase Price$620,000
+ Improvements$80,000
− Accum. Depreciation($110,000)
Adjusted Basis$590,000
Fair Market Value$740,000
Loan Balance($380,000)
Equity$360,000
LTV Ratio51.4%
Unrealized Gain$150,000
Years Held8.3
Cash Flow Analysisactual cash
Gross Rental Income$72,000
− Operating Expenses($24,000)
= NOI$48,000
Cap Rate (NOI/FMV)6.5%
− Debt Service (P+I)($36,000)
Net Cash Flow / Yr$12,000
Cash-on-Cash Return3.3%
Tax Benefit Analysistax paper
Gross Rental Income$72,000
− Operating Expenses($24,000)
− Mortgage Interest($19,800)
− Depreciation($17,949)
Taxable Income / (Loss)$10,251
Tax Rate Applied37%
Tax Benefit / Savings$0
Depreciation Runway
22% exhausted · 39yr life30 yrs left
Recommendation
Hold
Equity Yield3.3%
Hurdle: 6%w/ appr: 7.4%
- Acceptable equity yield — monitor for improvement
- Monitor depreciation runway — loss of shield changes picture
"Moderate leverage"
Passive Activity Loss (IRC §469)
Passive InvestorParticipation status for this property:
Participation status: Passive Investor
Paper Loss / Yr
None
Passive Income / Yr
$10,251
Allowed Deduction
—
Suspended (Carryforward)
—
This property produces $10,251/yr of taxable income (no current passive loss).
Passive Investor (§469) Losses ONLY offset other passive income. Net passive losses are suspended and carried forward until you have passive income to absorb them, or you fully dispose of the property.
Economic Return: This property generates a total economic return of $26,800/yr ($12,000 net cash flow + $14,800 appreciation), a 3.3% yield on its $360,000 of equity.
Dead Equity Gap: At a 6% hurdle rate, this equity should earn $21,600/yr but is falling $9,600/yr short. The trapped capital could work harder elsewhere — a prime 1031-exchange or repositioning candidate.
Downtown Office Condo — Sale ScenarioCommercial Real Estate
Sale Scenario AnalysisNot configured
▾Asset Cost Basis by Depreciation Class
Enter cost by class below, or click Sync to pre-fill from property data
| Asset Class | Initial Cost | Accum. Depreciation | §1245 / §1250 Treatment |
|---|---|---|---|
| 27.5yr Residential Bldg | $0 | $0 | — §1250 unrec. |
| 39yr Commercial Bldg | $0 | $0 | — §1250 unrec. |
| 15yr Land Improvements | $0 | $0 | — §1245 ord. |
| 10yr Property | $0 | $0 | — §1245 ord. |
| 7yr Property | $0 | $0 | — §1245 ord. |
| 5yr Property | $0 | $0 | — §1245 ord. |
| Land | $0 | — | Not depr. |
| Acquisition / Loan Costs | $0 | $0 | — §1245 ord. |
| TOTALS | $0 | $0 | §1245: — §1250: — |
Sale Parameters
Sales Price ($)
$0Selling / Closing Costs ($)
$0Loan Payoff ($)
$0Tax Rates Applied
§1245 / Ordinary Rate (%)
37%§1250 Unrecaptured Rate (%)
25%LT Capital Gain Rate (%)
20%§1245: 5/7/10/15yr personal property + loan costs — taxed as ordinary income. §1250 Unrecaptured (max 25%): 27.5/39yr building depreciation. Remaining gain: long-term capital gains rate. Tip: suspended passive losses released on sale can offset recapture.
Downtown Office Condo — Gain & Tax WaterfallProperty Analysis
Gain & Tax Waterfall
Total Cost Basis$0
Less: Accum. Depreciation$0
Adjusted Basis$0
Sales Price$0
Less: Selling Costs$0
Less: Adjusted Basis$0
Total Gain on Sale$0
§1245 Recapture — 5/7/10/15yr + costs (@ 37%)$0
Tax on §1245$0
§1250 Unrecaptured — 27.5/39yr bldg dep (@ 25%)$0
Tax on §1250$0
LT Capital Gain (@ 20%)$0
Tax on Gain$0
Total Tax Liability$0
Cash from Sale$0
Less: Selling Costs$0
Less: Loan Payoff$0
Net Cash Before Tax$0
Less: Total Tax$0
Net Cash After Tax$0
Enter a Sales Price to Get a Sale Recommendation
Fill in the Sales Price above to see whether selling, doing a 1031 exchange, or continuing to hold is recommended based on your after-tax net position.
How this works:
Cash Flow = Gross Rent − Operating Expenses − Total Debt Service (P+I) ·
Taxable Income = Gross Rent − Operating Expenses − Mortgage Interest − Depreciation ·
Tax Benefit = Taxable Loss × Marginal Rate ·
Equity Yield = (Cash Flow + Tax Benefit) ÷ Equity — true return on trapped capital ·
Dead Equity = equity not earning ≥ your hurdle rate (default 6%) — prime 1031 exchange candidate ·
Years Held is auto-calculated from Date Placed in Service