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Updated almost 6 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Arlington, VA
2
Votes |
8
Posts

How to calculate capital gains taxes

Account Closed
  • Rental Property Investor
  • Arlington, VA
Posted

Need help calculating capital gains taxes if we decide to do a straight sale vs. 1031. Need to pull out some cash and thinking we want to get out of being landlords but need some good numbers to make our decision. Have about 1 week remaining on 45-day clock to identify replacement properties if we proceed with the 1031 (monies are in escrow with QI), so need to wrap this up soon. Ran it by two accountants with access to our returns and got wildly different estimates , though I think they treated carryover losses differently in their calculations. Any resources out there to get exact figures so we can make an educated decision? Willing to pay for time & expertise. No kids or heirs in the mix , and would likely invest the remaining cash in mutual funds. We have an idea of how much we’re willing to eat in taxes but need better figures to make an informed decision. Thanks!

Most Popular Reply

Account Closed
  • Rental Property Investor
  • Arlington, VA
2
Votes |
8
Posts
Account Closed
  • Rental Property Investor
  • Arlington, VA
Replied

@Dave Foster thanks all! Just to clarify, the estimates we got were for a straight sale, not a partial. One accountant’s calculation was about 40k+ and the other’s was about 15k. Big difference. Being a landlord is ok for the most part, but we’d really like to pull out about 1/3 or so of the cash to pay off another debt . By the way, our QI does not seem to be familiar with any of the other 1031 options mentioned here.

Thanks for the tip to look at worst case scenario and depreciation - that would give us a good estimate. We’d be looking at tax at the 15% rate presumably.

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