Frank Bruno
Real Estate Sales & Consulting
Primary Residence - Net Proceeds Calculator
Sale Details
Estimated Breakdown
Adjusted Gross Profit
$0.00
Commission Cost
$0.00
Transfer Tax
$0.00
Seller Credits
$0.00
Other Closing Costs
$0.00
Home Sale Tax Exemption
$0.00
Final Taxable Gain
$0.00
Estimated Federal Tax
$0.00
Estimated State Tax
$0.00
Net Proceeds (Before Income Tax)
$0.00
After-Tax Net Proceeds (State + Federal)
$0.00
Seller Proceeds (Cash at Closing)
$0.00
Seller Net Proceeds (After Capital Gains Taxes)
$0.00
Net Investment Income Tax (NIIT)
The NIIT is an additional 3.8% federal tax that may apply to your home sale profit if your income is above a certain level. It's a separate tax from the regular capital gains tax.
How it's triggered: You may owe this tax if your total income for the year (your annual income PLUS the taxable gain from your home sale) is over:
- $200,000 for Single or Head of Household filers.
- $250,000 for Married Filing Jointly.
Calculation Explanations
Adjusted Gross Profit: This is your profit before selling costs and taxes. It's calculated as: `(Sale Price - Seller Credits) - (Original Purchase Price + Cost of Improvements)`.
Final Taxable Gain: This is the portion of your profit that is subject to taxes. It's your `Adjusted Gross Profit` minus all other selling costs (commission, transfer tax, etc.) and your tax exemption.
Estimated Federal Tax: The tax rate depends on how long you've owned the home.
- 2+ Years (Long-Term): The federal government taxes long-term capital gains at special rates (0%, 15%, or 20%). The rate depends on your total income (annual income + taxable gain).
- Less than 2 Years (Short-Term): The profit is taxed at your higher, ordinary federal income tax rates.
Estimated State Tax: California treats all capital gains as ordinary income. Your `Final Taxable Gain` is added to your annual income, and that total is taxed according to California's progressive income tax brackets (ranging from 1% to 13.3%). An additional 1% Mental Health Services Tax is applied to income over $1,000,000.
Seller Proceeds (Cash at Closing): This is the actual amount you receive from escrow when the sale closes, before accounting for capital gains taxes which are paid later. It's calculated as: `Sale Price - Loan Payoff - All Selling Costs`.
Net Proceeds (Before Income Tax): This is your profit from the sale after all transactional costs but before any income taxes are considered. It's calculated as: `Adjusted Gross Profit - (Commission + Transfer Tax + Other Closing Costs)`.
Final Amount (After Capital Gains): This is your true take-home amount after setting aside money for capital gains taxes. It's calculated as: `Seller Proceeds - All Taxes`.