Calculating Capital Gains

In order to determine capital gains, one must first determine the cost basis of a property. The cost basis is the original purchase price plus any improvements made, minus the depreciation taken during the life of ownership.

Purchase Price + Improvements – Depreciation = Net Adjusted Cost Basis

Sale Price – Net adjusted Cost Basis – Debt = Taxable Proceeds

​Cap Gains Tax Rates 2017

CA State Cap Gains = 9.3%
Fed Cap Gains = 15% or 20%
Depreciation = 25%
Medicare Surcharge = 3.8%

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