Analyzing the true income or gain from a real estate sale can be complicated.

The success of selling your home or real estate property can’t be assumed simply by gauging how the market is doing. Many factors specific to the seller and the property can impact the bottom line, so it’s important to consider all issues while deciding if and when to sell.

How It Works

We analyze a potential sales transaction to ensure the seller is making the best and most informed decision. Our formulas take consider the potential impact of capital gains tax rates, loan and leasing obligations, closing costs, and other factors.

Specifically, our analysis will provide potential sellers with the following important information:

  1. Expected gain or loss on the transaction
  2. The resulting tax impact to the individual
  3. The projected cash flow from the transaction

Why It’s Important

Understanding the answers to these questions provide the information you need to decide whether selling the property makes sense for you.

Occasionally, these insights reveal additional considerations, such as calculating the allocation of gain/tax among partners or assessing the benefits of a like-kind exchange.

In most situations, a basic sales transaction can be analyzed using the following information:

Tax basis

Tax basis of the property: find this on your current year tax depreciation report from your accountant

Sale Information

Specific information regarding the sale: If the sale has not yet closed, we’ll need the expected sale price, expected transaction costs from sale (commissions, fees, etc.), and the current property loan balance.

Escrow Papers

If the sale is already complete, send the escrow papers as they will have all necessary information. Your accountant also will need this in order to prepare your tax return.

Analyzing properties that have a complex history is especially important. If your property has previously undergone a cost segregation study, was acquired in a 1031 exchange, or was previously contributed into a partnership or corporation, the tax on a sale may be more difficult to determine.

Extra calculations to ensure that your information is accurate may be prudent. Remember that, if the property you are thinking about selling was originally acquired in a tax-deferred exchange, your tax basis in the property may be lower than expected.

Our clients rely on us for this service so that they can make the most advantageous choices in real estate transactions.

Our goal is to eliminate the element of surprise in the transaction so that you can move forward confidently to reach your business and personal goals.

We offer this service at a flat rate, contingent on a couple of variables so that you can get the information you need, when you need it. Contact us if you want to analyze a potential real estate sale, we’ll send you a list of documents needed and then get started on getting you the information you need.