Follow the default numbers.
With sale price of $500,000, original tax basis of $250,000, the model gives realized gain: $185,000.
The formula is gain = sale price − selling expenses − adjusted basis. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Use adjusted basis, not mortgage payoff
The model adds qualifying improvements to original basis and reduces it by depreciation allowed or allowable. Sale price less selling expenses is the amount realized. Subtract adjusted basis to find gain or loss. Debt payoff affects cash at closing but is absent from this gain formula. Personal-residence losses are generally not deductible, so a negative modeled gain does not create a tax refund here.
The home-sale exclusion has tests
The eligible primary-residence scenario can exclude up to $250,000 for a single filer or $500,000 for qualifying married joint filers. Ownership, residence, spouse-specific tests and use of an exclusion within the prior two years matter. Nonqualified use and mixed business/residential property can require allocations not modeled here. The checkbox is your assertion of eligibility, not the calculator’s finding.
Depreciation stays visible
Gain attributable to depreciation after the applicable statutory date generally cannot be excluded under Section 121. The tool separates potential unrecaptured Section 1250 gain and applies your chosen rate up to twenty-five percent. The remainder uses the selected capital-gain rate. State tax and net investment income tax are optional scenario rates rather than an automatic tax return calculation.
An estimate for planning
This simplified model assumes a long-term sale and straight-line building depreciation. Short-term gains, Section 1245 assets, installment sales, passive losses and state-specific exclusions can change the liability. Keep acquisition records, improvement receipts and depreciation schedules. A CPA or enrolled agent must review the facts before filing or relying on a sale-tax reserve.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.