Property Capital Gains Tax Calculator
Estimate your federal capital gains tax liability when selling a property, including depreciation recapture and Net Investment Income Tax (NIIT).
Formulas Used
Adjusted Basis = Purchase Price + Capital Improvements − Total Depreciation Claimed
Amount Realized = Sale Price − Selling & Closing Costs
Total Capital Gain = Amount Realized − Adjusted Basis
Section 121 Exclusion (Primary Residence, ≥2 years): $250,000 (Single) / $500,000 (MFJ) applied to gain after depreciation recapture
Depreciation Recapture (§1250) = min(Total Depreciation, Total Gain) — taxed at ordinary income rates, capped at 25%
Taxable Capital Gain = Total Gain − Depreciation Recapture − Section 121 Exclusion
Long-Term Capital Gains Tax: 0% / 15% / 20% depending on total income (2024 brackets)
Short-Term Capital Gains Tax: Taxed as ordinary income (10%–37% brackets)
Net Investment Income Tax (NIIT) = 3.8% × min(Net Investment Income, AGI − Threshold) where threshold is $200K (Single) / $250K (MFJ)
Total Federal Tax = Depreciation Recapture Tax + Capital Gains Tax + NIIT
Assumptions & References
- Uses 2024 federal tax brackets for both ordinary income and long-term capital gains.
- Long-term holding period is defined as more than 1 year (IRC §1222).
- Depreciation recapture under IRC §1250 is taxed as ordinary income but capped at a maximum rate of 25% (unrecaptured Section 1250 gain).
- Section 121 exclusion requires the taxpayer to have owned and used the property as a primary residence for at least 2 of the last 5 years (IRC §121).
- The Net Investment Income Tax (NIIT) of 3.8% applies under IRC §1411 to taxpayers with modified AGI above $200,000 (Single) or $250,000 (MFJ).
- Capital gains are "stacked" on top of ordinary income when determining the applicable long-term rate bracket.
- State and local taxes are not included. Many states tax capital gains as ordinary income.
- This calculator does not account for installment sales, like-kind exchanges (§1031), passive activity loss rules, or alternative minimum tax (AMT).
- References: IRS Publication 523 (Selling Your Home), IRS Publication 544 (Sales and Other Dispositions of Assets), IRC §§121, 1221, 1222, 1250, 1411.