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Rental property capital gains calculator: Flock Homes vs. selling

Compare taxes, equity retained, and long-term income from selling your rental traditionally versus exchanging it for Flock Fund shares.

See how much more you could keep by exchanging your rental property with Flock instead of selling outright. Using our capital gains tax calculator, compare taxes, equity retained, and long-term income potential in seconds.

Select the highest ordinary income tax bracket you reach including this sale. The model maps it to a capital gains rate, a depreciation recapture rate, and whether 3.8% NIIT applies.

Select a state to see the tax assumption.

Estimates use assumed federal capital gains tax and Net Investment Income Tax (NIIT) rates based on your federal tax bracket, and a fixed state tax rate for the selected state. Depreciation is modeled as 80% of purchase price depreciated over 27.5 years. Depreciation recapture (unrecaptured §1250 gain) is taxed at ordinary rates capped at 25%. Figures are illustrative only, and do not constitute tax advice.

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Result

If you sell
$0
Estimated cash after costs & taxes
721 exchange
$0
Equity still invested

Compare estimated equity retained with selling.

Property value

$0

Adjusted cost basis

What you originally paid for the property, minus estimated depreciation. Improvements and other adjustments aren’t included.

$0

Comparison

Traditional sale

721 exchange

Sale/contribution costs

Traditional sale: 6% estimated broker fees + 1% estimated closing costs. Flock: 6% onboarding fee + 1% estimated closing costs. Both total 7% of property value. Selling costs also reduce the modeled taxable gain.

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Outstanding mortgage

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Federal capital gains tax

The model applies 0%, 15%, or 20% to the gain after 7% selling costs, excluding the depreciation portion. The rate depends on your selected ordinary income tax bracket.

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Net investment income tax (NIIT)

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Depreciation recapture

Depreciation recapture (unrecaptured §1250 gain) is based on estimated depreciation and is limited to your gain after selling costs. Recapture on depreciation is taxed at ordinary rates capped at 25%. No recapture tax is modeled if the sale results in a taxable loss.

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Estimated state income tax

The model applies a fixed rate for your property state to the full gain, including depreciation. State deductions and overrides are included in that rate.

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Net value retained

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Selling may involve additional costs not included in this estimate: lost rental income while the property is vacant, staging to prepare it for buyers, and ongoing expenses such as property taxes, insurance, utilities and maintenance until closing. These costs would reduce your sale proceeds.

Benefits

Sale

721 exchange

Quarterly income

None (until reinvested)

Passive income

Future appreciation

Depends on reinvestment

Diversified, managed

Management role

Active landlord

Fully passive

Tax status

Due immediately

Deferred under 721

For residential rentals held more than one year. Uses estimated depreciation and simplified tax rates; filing status, income, exemptions and basis adjustments are not modeled. Actual taxes and proceeds may differ.

Flock assumes a qualifying, fully tax-deferred 721 exchange. Returns are not guaranteed. This calculator is not tax or investment advice or an offer of securities.