Simple Real Estate Capital Gains Calculator 2018

Use this simple real estate capital gains calculator to determine your capital gains or losses from selling property in 2018. The calculator helps you understand the financial impact of your real estate transaction while accounting for key factors like purchase price, sale price, and expenses.

How to Use This Calculator

To calculate your real estate capital gains for 2018, follow these simple steps:

Enter the purchase price of the property in the "Purchase Price" field.
Enter the sale price of the property in the "Sale Price" field.
Enter any additional costs associated with the sale (such as agent commissions, closing costs, or repairs) in the "Additional Costs" field.
Click the "Calculate" button to see your capital gains or losses.

The calculator will display your net capital gain or loss, which is the difference between the sale price and the total costs of acquiring the property.

Formula Used

The capital gain or loss is calculated using the following formula:

Capital Gain/Loss = Sale Price - (Purchase Price + Additional Costs)

Where:

Sale Price - The amount you received from selling the property
Purchase Price - The amount you paid to acquire the property
Additional Costs - Any other expenses related to the sale (e.g., commissions, repairs)

If the result is positive, you have a capital gain. If the result is negative, you have a capital loss.

Worked Example

Let's say you bought a property in 2018 for $250,000 and sold it for $320,000. Your agent commission was $10,000, and you had to make some repairs before selling, costing an additional $5,000.

Using the calculator:

Purchase Price: $250,000
Sale Price: $320,000
Additional Costs: $15,000 (commission + repairs)

The calculation would be:

Capital Gain = $320,000 - ($250,000 + $15,000) = $55,000

This means you have a capital gain of $55,000 from this transaction.

Tax Implications

Capital gains from real estate sales are generally taxable. In 2018, the IRS tax rates for capital gains were:

0% for gains up to $39,475
15% for gains between $39,476 and $433,900
20% for gains over $433,900

However, the tax treatment of capital gains can vary depending on your tax bracket, holding period, and whether the property qualifies for special tax treatments like the primary residence exclusion or 1031 exchange.

Note: This calculator provides an estimate of your capital gain or loss. For precise tax advice, consult with a tax professional.

Frequently Asked Questions

What is a capital gain?: A capital gain is the profit you make when you sell an asset (like real estate) for more than you paid for it.
What is a capital loss?: A capital loss is the amount you lose when you sell an asset for less than you paid for it.
Are all capital gains taxable?: In the US, short-term capital gains (held for less than a year) are taxed as ordinary income, while long-term capital gains (held for over a year) have preferential tax rates.
What expenses can I deduct from my capital gain?: You can deduct certain expenses like agent commissions, closing costs, and repairs from your capital gain calculation.
How do I report capital gains on my taxes?: You'll need to report capital gains and losses on Schedule D of your federal tax return.