Order of operations we use
Start with gain. Treat depreciation after May 6, 1997 and nonqualified-use gain as amounts that cannot be excluded. Apply your maximum exclusion only to the remaining excludable gain, capped by the exclusion limit. Taxable gain is what remains. This mirrors the Publication 523 idea that certain pieces of gain stay on the return even when the ownership and use tests are met.
Optional state line
If you type a percentage, the tool multiplies taxable gain by that rate and labels it as your assumption. SaleGain does not look up state conformity, residency or NIIT. Leave the field blank to omit it.
Reporting
Many home sales that are fully excluded still have reporting duties when a Form 1099-S is issued. See the Form 8949 / Schedule D guide and the IRS About Form 8949 page.
Feeding numbers from the other tools
Typical workflow: finish the gain-or-loss calculator, finish the Section 121 maximum-exclusion calculator, then paste both results here along with depreciation after May 6, 1997 from your rental or office files. If you already computed nonqualified-use gain using Publication 523’s longer worksheets, enter that dollar amount in the nonqualified-use field. Leaving depreciation blank when Schedule E history exists is the most common understatement of taxable gain among DIY filers.
The optional state percentage multiplies only the federal taxable gain estimate you see on screen. It does not apply graduated state brackets, conformity adjustments, or local taxes. Blank means omit. A filled field always carries the “assumption” label in the output so you do not mistake it for an official state engine.
What “taxable” still leaves open
Federal capital-gains rates, the 25% unrecaptured Section 1250 concept, and the 3.8% net investment income tax can all affect tax due after you know the taxable gain dollars. SaleGain intentionally stops before those layers so we never invent NIIT or rate-stacking shortcuts. Carry the taxable gain figure into Schedule D instructions or a preparer’s organizer.
Scope and limitations
Taxable-gain figures exclude NIIT and state engines unless you type an optional labelled rate. Depreciation after May 6, 1997 stays nonexcludable in this model. SaleGain does not file Form 8949 or advise on unrecaptured Section 1250 rates.
Record the tax-year label on every printout
When you screenshot results for a preparer, keep the tax-year field visible. Laws and publication revisions move; a labelled worksheet prevents mixing a 2024 fact pattern with a 2026 guide excerpt.