Estimate your all-in tax on a sale — federal capital gains, the 3.8% NIIT, depreciation recapture, and California — then see how much spreading the gain over years could save you. Free, instant, no email required to see your number.
Estimate using 2025 rates & simplifying assumptions. Not tax advice.
Selling an appreciated asset in a single year stacks four taxes at once — the federal capital gains rate (up to 20%), depreciation recapture (up to 25%), the 3.8% Net Investment Income Tax, and your state tax (California taxes the entire gain as ordinary income, up to 13.3%). This tool estimates all four, then shows what happens when you spread the capital-gain portion across multiple years with a structured installment sale under IRC §453: lower brackets, less surtax, and a smaller total bill.
Every one of those taxes is triggered by income landing in one year. Spread it out and each layer softens. The "tax saved" figure above is the difference between paying it all at once and paying it in planned slices — money you keep instead of sending to the IRS and California. Depreciation recapture is recognized up front (it generally can't be deferred), so the savings come from the capital-gain portion.
Long-term capital gains are taxed federally at 0%, 15%, or 20% depending on your total taxable income, plus a 3.8% Net Investment Income Tax above certain thresholds. Depreciation you previously claimed is recaptured (up to 25% federally), and states like California tax the entire gain as ordinary income — up to 13.3%.
Because tax brackets, the 3.8% surtax, and California's top rate are all driven by your income in a single year, recognizing a large gain all at once pushes you into the highest brackets. A structured installment sale under IRC §453 spreads the gain across multiple years, keeping more of it in lower brackets.
Yes. It estimates California tax using current marginal brackets (California taxes capital gains as ordinary income, up to 13.3% including the mental-health surcharge). You can also select another state's effective rate or no state tax.
Generally no — depreciation recapture is usually recognized in the year of sale even under the installment method. This calculator recognizes recapture up front and spreads only the capital-gain portion, which mirrors how the tax actually works.
No. It's an educational estimate using current-year rates and simplifying assumptions. Your actual tax depends on your full return. Use it to see the scale of the opportunity, then talk to Hans and your CPA before acting.
Before you sign anything, run your numbers with someone who structures the deal to be tax-smart and audit-ready from day one.
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