: The IRS "recaptures" the tax benefits you took during ownership. This is often taxed at a flat rate of up to 25% .

Three primary taxes typically impact your final wealth at the time of sale:

: High-income earners may owe an additional 3.8% . 4. Final Wealth Calculation

Tax is not calculated on the sales price, but on the "gain" after adjustments . : Taxable Gain : 3. Calculate Exit Taxes

Combine your annual earnings with your final sale proceeds to see your total wealth. Real-Estate Profitability Calculations: How Does It Work?