Interactive Lab
Depreciation Recapture Calculator
Depreciation Recapture & After-Tax Sale Proceeds Calculator
What you actually keep after selling -- splitting the gain into recaptured depreciation and remaining capital gain.
$5,000,000
$
3%
$3,500,000
$
$900,000
$
$2,000,000
$
25%
20%
Total Gain on Sale
$2,250,000
Depreciation Recapture (Sec. 1250)
$900,000
Remaining Long-Term Capital Gain
$1,350,000
Total Tax Due
$495,000
After-Tax, After-Debt Proceeds
$2,355,000
Illustrative federal rates only -- state tax, the 3.8% net investment income tax, and passive-loss carryforwards are not modeled here.
Learn the concept behind this tool