Shafiq Hirani CCIMReal Estate Advisor at REMAX Distinctive

Sold for $4M—How Much Do You Actually Keep? #shorts

21 Oct 2026 · 1 min

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1:07

In this concise walkthrough, the speaker breaks down the net cash a seller would receive after selling a property for $4 million. Starting with the original purchase price of $1.8 million and $400 k of depreciation taken, the adjusted basis is estimated at $1.4 million. After subtracting estimated commissions/closing costs ($240 k) and a $1.5 million loan payoff, the total taxable gain is about $2.36 million. The tax liability is split into $400 k depreciation recapture (taxed up to 25%, roughly $100 k) and $1.96 million appreciation (taxed at 20%, about $392 k), plus a net investment income tax of roughly $90 k. Total taxes are around $580 k, leaving the seller with approximately $1.68 million net proceeds.

Chapters

Net to you, roughly $1.68 million on a $4 million sale. Let me walk it. $4 million sale. You bought it years ago at $1.8 million. You have taken about $400,000 in depreciation, so your adjusted basis is roughly $1.4 million. Start at $4 million minus commission and closing costs, call it $240,000 minus your loan payoff. Say $1.5 million. Now taxes. Your total gain is about $2.36 million, and it is taxed in 2 pieces. The first $400,000 is depreciation recapture, taxed at up to 25%. Call it $100,000. The other $1.96 million is appreciation, taxed at 20%. That is $392,000. Then net investment income tax on the whole gain, roughly $90,000. Total tax around $580,000. Net to you, roughly $1.68 million on a $4 million sale.