Capital Gains on Real Estate Worksheet

⬇️ New Spreadsheet Download

If you’ve seen the True Net Equity™ Spreadsheet for calculating the very important True Net Equity™ you have in your real estate portfolio, you may have asked:

“How do I estimate Capital Gains on my properties?”

Enter the new Capital Gains on Real Estate Worksheet for estimating how much you might be paying on your properties if you sell them.

Calculating Capital Gains and Capital Gains Taxes

This is an oversimplified explanation, but since we’re just estimating your capital gains expense it should get you pretty close.

To calculate capital gains you need to know how much you purchased the property for and what you’re selling it for.

Plus, you can subtract out your costs associated with the sale like any real estate commissions you’re paying on the sale and your share of closing costs as the seller.

If you subtract the purchase price, real estate commissions and closing costs from your purchase price it should you a rough idea of what your capital gain would be.

Sale Price - Purchase Price - Commissions - Closing Costs = Capital Gain

That’s not how much tax you’ll have to pay, it is just the amount of your net gain on the sale that you will need to pay taxes on.

To determine your taxes, look up your capital gains tax rate (if any at all) for that particular property and your situation and use that tax rate to determine an estimated amount of capital gains tax due.

Capital Gains * Capital Gains Tax Rate = Capital Gain Taxes

For many real estate investors:

• If you own the property for less than a year you’re often paying capital gains at your ordinary income tax rate.

• If you own the property for more than a year you’re often paying capital gains at the 15% rate.

There are lots of exceptions to this. See the IRS website for more info:

https://www.irs.gov/taxtopics/tc409

Capital Gains on Real Estate Worksheet

Use the Capital Gains on Real Estate Worksheet to quickly estimate your capital gains tax on each property.

Then, transfer that number to the True Net Equity™ Spreadsheet to calculate True Net Equity™.

License

This spreadsheet—and all the others on this website unless explicitly stated otherwise—is provided to current, active subscribers under the very limited, revocable Don’t Steal My Stuff license. Basically, you can use it for your own personal use only while you’re a paying subscriber.

Spreadsheet Download

Download the latest version of the Capital Gains on Real Estate Worksheet below.