RealVest Real Estate MCP Server

import { test } from 'node:test'; import assert from 'node:assert'; import { CapitalGainsTaxCalculator } from '../src/calculators/capital-gains-tax.js'; test('CapitalGainsTaxCalculator - Basic Long-Term Capital Gain', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 500000, original_purchase_price: 300000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 80000 } }); // Test structure assert(result.transaction_summary, 'Should have transaction summary'); assert(result.gain_loss_analysis, 'Should have gain/loss analysis'); assert(result.tax_calculation, 'Should have tax calculation'); // Test transaction summary const summary = result.transaction_summary; assert(summary.sale_price === 500000, 'Should preserve sale price'); assert(summary.purchase_price === 300000, 'Should preserve purchase price'); assert(summary.holding_period.years === 4, 'Should calculate 4-year holding period'); assert(summary.gain_or_loss === 200000, 'Should calculate $200,000 gain'); assert(summary.gain_type === 'Capital Gain', 'Should identify as capital gain'); // Test gain/loss analysis const gain = result.gain_loss_analysis; assert(gain.adjusted_basis === 300000, 'Should calculate adjusted basis'); assert(gain.net_proceeds === 500000, 'Should calculate net proceeds'); assert(gain.gross_capital_gain === 200000, 'Should calculate gross gain'); assert(gain.is_long_term === true, 'Should identify as long-term gain'); assert(gain.depreciation_recapture === 0, 'Should have no depreciation recapture'); // Test tax calculation const tax = result.tax_calculation; assert(tax.federal_tax_liability > 0, 'Should calculate federal tax liability'); assert(tax.effective_tax_rate > 0, 'Should calculate effective tax rate'); assert(tax.marginal_rates.ltcg_rate !== undefined, 'Should provide LTCG rate'); }); test('CapitalGainsTaxCalculator - Investment Property with Depreciation', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 400000, original_purchase_price: 250000, purchase_date: '2018-06-01', sale_date: '2024-06-01', property_type: 'investment_property' }, property_improvements: { capital_improvements: 25000, selling_expenses: 24000, buying_expenses: 6000 }, depreciation_details: { total_depreciation_taken: 36000, years_as_rental: 6, annual_depreciation: 6000 }, taxpayer_profile: { filing_status: 'married_filing_jointly', annual_income: 150000 } }); const gain = result.gain_loss_analysis; // Adjusted basis = 250k + 25k (improvements) + 6k (buying costs) - 36k (depreciation) = 245k assert(gain.adjusted_basis === 245000, 'Should calculate adjusted basis with improvements and depreciation'); // Net proceeds = 400k - 24k (selling expenses) = 376k assert(gain.net_proceeds === 376000, 'Should calculate net proceeds after selling expenses'); // Gross gain = 376k - 245k = 131k assert(gain.gross_capital_gain === 131000, 'Should calculate gross capital gain'); // Depreciation recapture should be 36k (all depreciation taken) assert(gain.depreciation_recapture === 36000, 'Should calculate depreciation recapture'); // Capital gain after recapture = 131k - 36k = 95k assert(gain.capital_gain_after_recapture === 95000, 'Should calculate capital gain after recapture'); const tax = result.tax_calculation; assert(tax.tax_breakdown.depreciation_recapture_tax > 0, 'Should calculate depreciation recapture tax'); assert(tax.tax_breakdown.capital_gains_tax > 0, 'Should calculate capital gains tax'); }); test('CapitalGainsTaxCalculator - Primary Residence Exclusion', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 800000, original_purchase_price: 400000, purchase_date: '2019-01-01', sale_date: '2024-01-01', property_type: 'primary_residence' }, taxpayer_profile: { filing_status: 'married_filing_jointly', annual_income: 120000, years_in_primary_residence: 5 } }); const primary = result.primary_residence_analysis; assert(primary, 'Should include primary residence analysis'); assert(primary.qualifies_for_exclusion === true, 'Should qualify for exclusion with 5 years residence'); assert(primary.max_exclusion_allowed === 500000, 'Should allow $500k exclusion for married filing jointly'); assert(primary.excluded_gain === 400000, 'Should exclude $400k of the gain'); assert(primary.taxable_gain_after_exclusion === 0, 'Should have no taxable gain after exclusion'); const tax = result.tax_calculation; assert(tax.federal_tax_liability === 0, 'Should have no federal tax with full exclusion'); }); test('CapitalGainsTaxCalculator - Primary Residence Partial Exclusion', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 1000000, original_purchase_price: 300000, purchase_date: '2021-01-01', sale_date: '2024-01-01', property_type: 'primary_residence' }, taxpayer_profile: { filing_status: 'single', annual_income: 200000, years_in_primary_residence: 3 } }); const primary = result.primary_residence_analysis; assert(primary.qualifies_for_exclusion === true, 'Should qualify with 3 years residence'); assert(primary.max_exclusion_allowed === 250000, 'Should allow $250k exclusion for single filer'); assert(primary.excluded_gain === 250000, 'Should exclude maximum $250k'); assert(primary.taxable_gain_after_exclusion === 450000, 'Should have $450k taxable gain remaining'); }); test('CapitalGainsTaxCalculator - High Income NIIT Analysis', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 600000, original_purchase_price: 400000, purchase_date: '2022-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 300000 // Above NIIT threshold } }); const tax = result.tax_calculation; assert(tax.tax_breakdown.net_investment_income_tax > 0, 'Should calculate NIIT for high earners'); // NIIT should be 3.8% of the gain const expected_niit = 200000 * 0.038; assert(Math.abs(tax.tax_breakdown.net_investment_income_tax - expected_niit) < 100, 'Should calculate NIIT at 3.8% rate'); }); test('CapitalGainsTaxCalculator - Capital Loss Scenario', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 250000, original_purchase_price: 350000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, property_improvements: { selling_expenses: 15000 }, taxpayer_profile: { filing_status: 'single', annual_income: 100000 } }); const summary = result.transaction_summary; assert(summary.gain_type === 'Capital Loss', 'Should identify as capital loss'); assert(summary.gain_or_loss < 0, 'Should have negative gain (loss)'); const tax = result.tax_calculation; assert(tax.federal_tax_liability === 0, 'Should have no tax liability on loss'); assert(tax.net_capital_position < 0, 'Should have negative capital position'); }); test('CapitalGainsTaxCalculator - Short-Term Capital Gain', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 450000, original_purchase_price: 400000, purchase_date: '2023-06-01', sale_date: '2024-01-01', // Less than 1 year property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 80000 } }); const gain = result.gain_loss_analysis; assert(gain.is_long_term === false, 'Should identify as short-term gain'); assert(gain.holding_period.total_days < 365, 'Should have holding period less than 365 days'); const tax = result.tax_calculation; assert(tax.marginal_rates.ltcg_rate === null, 'Should not have LTCG rate for short-term gain'); // Short-term gains taxed as ordinary income assert(tax.marginal_rates.ordinary_rate > 0, 'Should use ordinary tax rate'); }); test('CapitalGainsTaxCalculator - State Tax Analysis', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 500000, original_purchase_price: 350000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 120000, state_of_residence: 'CA' }, analysis_options: { state_tax_analysis: true } }); const state = result.state_tax_analysis; assert(state, 'Should include state tax analysis when requested'); assert(state.state === 'California', 'Should identify California'); assert(state.state_tax_rate > 0, 'Should have positive state tax rate for CA'); assert(state.state_tax_liability > 0, 'Should calculate state tax liability'); assert(state.no_state_tax === false, 'Should indicate CA has state tax'); }); test('CapitalGainsTaxCalculator - No State Tax Analysis', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 500000, original_purchase_price: 350000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 120000, state_of_residence: 'TX' }, analysis_options: { state_tax_analysis: true } }); const state = result.state_tax_analysis; assert(state.state === 'Texas', 'Should identify Texas'); assert(state.state_tax_rate === 0, 'Should have zero state tax rate for TX'); assert(state.state_tax_liability === 0, 'Should have no state tax liability'); assert(state.no_state_tax === true, 'Should indicate TX has no state tax'); }); test('CapitalGainsTaxCalculator - Strategy Analysis', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 800000, original_purchase_price: 500000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'married_filing_jointly', annual_income: 250000 }, tax_strategies: { consider_1031_exchange: true, installment_sale_option: true, opportunity_zone_investment: true, harvest_losses: true }, analysis_options: { strategy_comparison: true } }); const strategies = result.strategy_analysis; assert(strategies, 'Should include strategy analysis when requested'); assert(Array.isArray(strategies.available_strategies), 'Should provide available strategies'); assert(strategies.available_strategies.length > 0, 'Should have multiple strategies'); const strategy_names = strategies.available_strategies.map(s => s.strategy); assert(strategy_names.includes('1031 Like-Kind Exchange'), 'Should include 1031 exchange'); assert(strategy_names.includes('Installment Sale'), 'Should include installment sale'); assert(strategy_names.includes('Opportunity Zone Investment'), 'Should include opportunity zones'); if (strategies.best_strategy) { assert(strategies.best_strategy.tax_savings > 0, 'Best strategy should show tax savings'); assert(Array.isArray(strategies.best_strategy.requirements), 'Should list strategy requirements'); } }); test('CapitalGainsTaxCalculator - Timing Optimization', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 600000, original_purchase_price: 400000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 150000 }, analysis_options: { timing_optimization: true } }); const timing = result.timing_analysis; assert(timing, 'Should include timing analysis when requested'); assert(Array.isArray(timing.timing_scenarios), 'Should provide timing scenarios'); assert(timing.timing_scenarios.length >= 2, 'Should have multiple timing scenarios'); const scenarios = timing.timing_scenarios; assert(scenarios.find(s => s.scenario === 'Sell This Year'), 'Should include current year scenario'); assert(scenarios.find(s => s.scenario === 'Sell Next Year'), 'Should include next year scenario'); if (timing.optimal_timing) { assert(timing.optimal_timing.tax_liability >= 0, 'Should show tax liability for optimal timing'); } assert(Array.isArray(timing.timing_factors), 'Should list timing factors'); }); test('CapitalGainsTaxCalculator - Year Comparison', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 500000, original_purchase_price: 350000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 100000 }, analysis_options: { compare_tax_years: true } }); const years = result.year_comparison; assert(years, 'Should include year comparison when requested'); assert(Array.isArray(years.year_comparisons), 'Should provide year comparisons'); assert(years.year_comparisons.length >= 2, 'Should compare multiple years'); years.year_comparisons.forEach(year => { assert(year.tax_year >= 2024, 'Should include current and future years'); assert(year.federal_tax >= 0, 'Should calculate federal tax for each year'); assert(year.effective_rate >= 0, 'Should calculate effective rate for each year'); }); assert(Array.isArray(years.tax_planning_notes), 'Should provide tax planning notes'); }); test('CapitalGainsTaxCalculator - Recommendations Generation', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 750000, original_purchase_price: 400000, purchase_date: '2020-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'married_filing_jointly', annual_income: 180000 } }); const recommendations = result.recommendations; assert(recommendations, 'Should provide recommendations'); assert(Array.isArray(recommendations.recommendations), 'Should have recommendations array'); assert(recommendations.recommendations.length > 0, 'Should have multiple recommendations'); assert(recommendations.overall_assessment, 'Should provide overall assessment'); const categories = recommendations.recommendations.map(r => r.category); assert(categories.length > 0, 'Should categorize recommendations'); assert(Array.isArray(recommendations.key_action_items), 'Should provide action items'); assert(recommendations.key_action_items.length > 0, 'Should have action items'); }); test('CapitalGainsTaxCalculator - Primary Residence Not Qualifying', () => { const calc = new CapitalGainsTaxCalculator(); const result = calc.calculate({ property_details: { sale_price: 650000, original_purchase_price: 400000, purchase_date: '2023-01-01', sale_date: '2024-01-01', property_type: 'primary_residence' }, taxpayer_profile: { filing_status: 'single', annual_income: 90000, years_in_primary_residence: 1 // Less than 2 years required } }); const primary = result.primary_residence_analysis; assert(primary.qualifies_for_exclusion === false, 'Should not qualify with only 1 year residence'); assert(primary.excluded_gain === 0, 'Should have no excluded gain'); assert(primary.taxable_gain_after_exclusion === 250000, 'Should have full gain taxable'); // Should recommend waiting to qualify const recommendations = result.recommendations.recommendations; const delayRec = recommendations.find(r => r.recommendation.includes('delaying sale')); assert(delayRec, 'Should recommend delaying sale to qualify for exclusion'); }); test('CapitalGainsTaxCalculator - Holding Period Calculation', () => { const calc = new CapitalGainsTaxCalculator(); // Test exact 1 year const result1 = calc.calculate({ property_details: { sale_price: 400000, original_purchase_price: 350000, purchase_date: '2023-01-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 80000 } }); assert(result1.gain_loss_analysis.holding_period.years === 1, 'Should calculate 1 year holding period'); assert(result1.gain_loss_analysis.is_long_term === true, 'Should be long-term at exactly 1 year'); // Test less than 1 year const result2 = calc.calculate({ property_details: { sale_price: 400000, original_purchase_price: 350000, purchase_date: '2023-06-01', sale_date: '2024-01-01', property_type: 'investment_property' }, taxpayer_profile: { filing_status: 'single', annual_income: 80000 } }); assert(result2.gain_loss_analysis.is_long_term === false, 'Should be short-term for less than 1 year'); }); test('CapitalGainsTaxCalculator - Schema Validation', () => { const calc = new CapitalGainsTaxCalculator(); const schema = calc.getSchema(); assert(schema.type === 'object', 'Schema should be an object'); assert(schema.properties.property_details, 'Should have property_details property'); assert(schema.properties.taxpayer_profile, 'Should have taxpayer_profile property'); assert(schema.properties.property_improvements, 'Should have property_improvements property'); assert(schema.properties.depreciation_details, 'Should have depreciation_details property'); assert(schema.properties.tax_strategies, 'Should have tax_strategies property'); assert(schema.properties.analysis_options, 'Should have analysis_options property'); assert(schema.required.includes('property_details'), 'property_details should be required'); assert(schema.required.includes('taxpayer_profile'), 'taxpayer_profile should be required'); // Test nested schema structure const propertyDetails = schema.properties.property_details; assert(propertyDetails.properties.sale_price, 'Should define sale_price'); assert(propertyDetails.properties.original_purchase_price, 'Should define original_purchase_price'); assert(propertyDetails.properties.property_type, 'Should define property_type'); assert(propertyDetails.required.includes('sale_price'), 'sale_price should be required'); assert(propertyDetails.required.includes('original_purchase_price'), 'original_purchase_price should be required'); });