Sale Analysis Fees and Taxes

[Glen Gallo]

Hello I am putting together a worksheet for analysis of whether to keep and rent or sell and take profit for a single family home.

The home has never been my residence. Held more than a year.  Married filing jointly 125k income

Not looking at a 1031 at this time

between State and Federal what should i pencil in for Cap Gain percentage

Real Estate fees percentage

ancillary fees percentage

Thank you in advance

[Casey Murray]

@Glen Gallo 

My understanding is the following:

Federal long term cap gain rates vary from 0%-20% based on tax bracket

CA long term cap gain rates vary from 0%-13.3% based on tax bracket

Also have to include depreciation recapture tax which I believe is 25%

Commissions and closing costs are around 6% of sale price

Look at your return on equity (ROE) which is the NOI from renting the property divided by property value. A common result with property in San Diego is a low ROE which points towards selling the property to capture the profit.

Why don't you want to 1031 into another property? Since this was never your primary, you'd be paying taxes which can add up fast.