: The remaining profit is taxed at long-term capital gains rates—typically 0%, 15%, or 20% depending on your income level—if held for over a year .

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

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

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