If the investor does not move forward with an exchange, then the transfer of property is a sale subject to taxation.

An investor that holds property longer than 1 year will be taxed at the favorable capital gains tax rate. Otherwise, the sales gain is taxed at the ordinary income rate.

Here is a capital gains calculator to illustrate potential taxes if you sell your property rather than exchange.

Property you are selling

Selling price of property:

Commissions and settlement costs:

Net Selling Price:

Basis in property you are selling (complete only one option below)

If purchased, original cost of property:

If inherited, market value at time of inheritance:

If received as a gift, purchase price by giftor:

Depreciation taken since property acquired:

Basis in property you are selling:

Tax Rates

Federal tax rate due to appreciation:

Federal tax rate on depreciation recapture:

State tax rate on total gain:

Tax Calculations

Gain on sale

Federal tax on capital gains:

Federal tax on depreciation recapture:

Total estimated federal tax:

State tax on total gain:

Total tax savings resulting from deferral of entire gain:

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