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

To calculate your after-tax future wealth from real estate, you must account for annual cash flow, property appreciation, and the tax liabilities triggered upon a future sale. 1. Project Future Pre-Tax Value

Start by estimating what the property will be worth at the end of your holding period. : PVcap P cap V : Current property value . : Expected annual appreciation rate (as a decimal) . : Number of years you plan to hold the property .