Calculators › After-Tax Sale Proceeds Calculator
TaxesBy Cedrick Reese, Property Rental Calculator
Free calculator that estimates your net cash in hand after selling a rental, after tax, recapture, selling costs, and loan payoff.
Your sale
Agent commissions and closing costs.
Purchase price plus buying costs and improvements.
Recaptures as ordinary income with no 25% cap.
| Total gain | – |
|---|---|
| §1245 recapture (ordinary income) | – |
| §1250 recapture (25% cap) | – |
| Capital gain on the rest | – |
| Total tax at sale | – |
| Effective rate on the gain | – |
You are selling at or below your adjusted basis, so there is generally no gain and no tax. The net figure above still nets out your selling costs and loan payoff.
Simplified federal estimate. It ignores state tax and some Net Investment Income Tax nuances, and assumes straight-line residential depreciation for the §1250 portion. Educational only, not tax advice. See IRS Topic 409 and Publication 544, and confirm with a CPA. Last reviewed August 2026.
The depreciation recapture estimator tells you the tax. This tool goes one step further and nets out your loan payoff, so the headline is the actual cash that hits your account at closing. If you are underwater, or your payoff is large, that number can be far below what the sale price suggests, and it can even be negative, meaning you would bring money to the table.
Your total gain is the net sale price minus your adjusted basis (cost basis minus depreciation). The IRS then taxes it in layers: the part equal to your depreciation is unrecaptured Section 1250 gain at up to 25%, and the rest is long-term capital gain at 0, 15, or 20%. If a cost segregation study reclassified components into Section 1245 property, that depreciation recaptures as ordinary income with no cap, which the advanced section handles.
Sell for $500,000 with $30,000 in selling costs and a $180,000 loan to pay off. With a $300,000 basis and about $90,910 of depreciation, the total gain is roughly $260,910, and the tax comes to about $48,228. Your net cash in hand is $500,000 minus $30,000, minus $180,000, minus $48,228, or about $241,773. A 1031 exchange would defer the tax portion entirely.
The recapture tool stops at the tax. This one subtracts your mortgage payoff too, so it shows the cash you actually receive, not just what you owe the IRS.
Yes. A properly structured 1031 defers the entire tax, so your proceeds roll into the replacement property instead of part going to taxes. See the 1031 exchange explained.
They reduce your amount realized on the sale, which lowers your taxable gain. This tool subtracts them before computing the gain.
If the sale nets below your adjusted basis, there is generally no gain and no recapture. The tool still nets out selling costs and your loan payoff to show your cash position.
Cedrick Reese, a web developer, built this calculator on the same layered capital-gains treatment the IRS applies at sale: unrecaptured Section 1250 gain taxed at up to 25%, any Section 1245 cost-segregation components recaptured as ordinary income, and the remaining gain taxed at your long-term capital gains rate, then nets out your loan payoff and selling costs to show the actual cash you would walk away with. The math is checked against the worked example on this page and against the companion depreciation recapture estimator, which applies the same tax layers on its own. If federal capital gains rates, the Net Investment Income Tax threshold, or depreciation recapture rules change, this page gets updated to match.