Cost Basis Calculator

Calculate your adjusted cost basis for accurate capital gains determination—essential for planning a successful 1031 exchange

Your cost basis is the foundation for calculating capital gains tax when you sell investment property. It starts with your purchase price, increases with capital improvements, and decreases with depreciation. Use this calculator to determine your adjusted cost basis and estimate your tax liability.

Property Information

Affects depreciation calculation. Residential uses 27.5-year period, commercial uses 39 years.

How long you've owned the property. Used to calculate depreciation.

$

Your best estimate of what the property is worth today. Used to calculate estimated capital gain, not your cost basis.

Starting Basis

$

The contract price you paid for the property. Don't include closing costs here—those are added separately below.

Starting Basis:$0

Purchase price + closing costs

Capital Improvements

No improvements added yet. Click "Add Improvement" or use the quick-add buttons below.

Common Improvements

Click to quick-add:

Total Improvements:$0

0 improvements added

Depreciation

Important:

Even if you didn't claim depreciation on your rental property, the IRS requires depreciation recapture when you sell. You must recapture the depreciation you "should have taken" even if you didn't claim it on your tax returns.

$

Total depreciation claimed on tax returns. Look at Form 4562 or Schedule E for this amount.

Total Depreciation:$0

This amount will be subtracted from your cost basis

Please Review

  • • No capital improvements entered. Most properties have some improvements over time. Review our checklist.

Enter Your Property Information

Fill in the property details and purchase information to calculate your adjusted cost basis and estimated capital gains.

Important Tips

  • •Keep all receipts, invoices, and permits for your improvements. The IRS may request documentation.
  • •Only capital improvements add to your basis, not regular repairs or maintenance.
  • •Consider consulting a CPA to verify your calculation before filing taxes or starting a 1031 exchange.
  • •Even if you didn't claim depreciation on your rental property, the IRS requires depreciation recapture when you sell based on "allowable" depreciation.