Try Our Real Estate Capital Gains Tax Calculator!
If you’re selling a commercial or multifamily property, understanding your capital gains tax burden is essential. As many already know, capital gains taxes can be deferred in several ways, including by using a 1031 exchange, in which an investor/owner “exchanges” one property for another of equal or higher value and is permitted to avoid paying their capital gains taxes until the sale of their new “exchanged” property.
Later on, when an investor/owner decides to sell this second property, they can also exchange it for another property of equal or greater value in a second 1031 exchange; in fact, there is currently no limit on how many times an investor can utilize 1031 exchanges to defer their capital gains tax burden. However, when they finally sell the property, they will still need to pay whatever capital gains taxes they owe on each property they have sold.
Use the calculator below, provided by JRW investments, to calculate your potential capital gains burden upon the sale of a commercial or multifamily property.