STEP 1. Calculate Net Adjusted Basis
Original purchase price:
Improvements:
Depreciation:
Net Adjusted Basis	=	(Original purchase price) + (Improvements) - (Depreciation)
STEP 2. Calculate Capital Gain
Selling Price:
Cost of Sale		including commissions, etc.
Capital Gain	=	(Selling Price) - (Net Adjusted Basis) - (Cost of Sale)
STEP 3. Calculate Capital Gain Tax Due
State Capital Gain Tax Rate:		the capital gain tax rate in your state
Recaptured Depreciation	=	(Depreciation) x 25%
Federal Capital Gain Tax (15%)	=	(Capital Gain) x 15%
State Capital Gain Tax	=	(State Capital Gain Rate) x (Capital Gain)
Total Taxes Due	=	(Recaptured Depreciation) + (Federal Capital Gain Tax) + (State Capital Gain Tax)
STEP 4. Calculate Equity
Loan Balance:
Gross Equity	=	(Selling Price) - (Cost of Sale) - (Loan Balance)
After Tax Equity	=	(Gross Equity) - (Total Taxes Due)

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