Be an Investor,
Not a Landlord
with The Equity Edge
- Sell your investment property, tax-free, through a 1031 Exchange
- Invest the equity from the sale in Hughes Capital's buy and hold fund, a 100% passive investment
- Double the investment income you're earning now
Use our 3-minute calculator to find out how
much you can save in taxes, and how much more
money you could be earning, without all the
How much more money could you
You’ve already saved $000,000 in taxes! Now you have $000,000 in sales proceeds to invest in Hughes Capital's buy and hold fund. Use the calculator below to see how your money will grow by compounding over the years.
Invest Your $000,000
Ready to get started?
Disclaimer: This Calculator is meant as a sample financial exercise only and is not indicative of actual taxes owed or profit received. Consult your tax advisor for advice. This is not an offer to buy or sell any security or interest. Any such offer or solicitation may be made only by delivery of the fund's confidential private offering memorandum and only to accredited investors in jurisdictions where permitted by law. Past performance is not indicative of future results. Hughes Private Capital, LLC is limited to accepting only Accredited Investors with a minimum of $25,000 or more for investment. A partial definition for an accredited investor is a natural person whose individual "net worth" or joint net worth with Client's spouse, exceeds $1,000,000 excluding the value of primary residence; or a natural person who had an individual income in excess of $200,000 in each of the most two most recent years or joint income with Client's spouse in excess of $300,000 in each of those years.
You are only allowed to depreciate the value of your building and all its improvements — not the land — because land doesn’t depreciate. We have set a default of 75% as the Improvement Value to the Total Cost Basis, but you may adjust this as necessary.
Depreciation recapture is the portion of the gain attributable to the depreciation deductions previously allowed during the period you owned the property. Upon the sale of your property, you will be required to pay a 25% Depreciation Recapture Tax on the depreciation you have been receiving as a tax benefit throughout your years of ownership. You can avoid Depreciation Recapture Tax by doing a 1031 Exchange.
Transactional Costs should include your real estate agent’s commission, escrow costs, title insurance costs, credits to buyer, etc. We recommend setting this to 7%, but you may adjust it as necessary.