Estimate your all-in tax on a sale, federal capital gains, the 3.8% NIIT, depreciation recapture, and your state, then see how much spreading the gain over years could save you. Works for all 50 states. Free, instant, no email required to see your number.
Find out what your tax bill actually looks like before you sell — including the parts your CPA may not raise until the return is already being prepared.
Most people find out what they owe after the sale closes, when nothing can be changed. A short conversation now tells you the number, which layers apply to you, and which options are still open.
📞 Hans Goldstein · 213-340-2018 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC
Estimate using 2026 rates & simplifying assumptions. Not tax advice.
Send me the sale price and rough basis and I'll email you the actual number within one business day — plus the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation · the carrier compensates the broker, not you.
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. State tax varies widely: nine states (including Texas, Florida, and Nevada) have none, while California taxes the entire gain as ordinary income up to 13.3%. Pick your state above and 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. See capital gains tax rates by state.
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 gains are not taxed at your income tax rate. They get their own three-rate schedule, and which rate you pay depends on your total taxable income for the year, including the gain itself. That is why a single large sale can push a gain that would have been taxed at 0% all the way to 20%.
| Filing status | 0% up to | 15% up to | 20% above |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married filing jointly | $98,900 | $613,700 | $613,700 |
| Head of household | $66,200 | $579,600 | $579,600 |
| Married filing separately | $49,450 | $306,850 | $306,850 |
Tax year 2026 thresholds, per IRS Topic No. 409. On top of these, the 3.8% net investment income tax applies once modified AGI passes $200,000 single or $250,000 married filing jointly, and those two thresholds are not indexed for inflation.
Hold the asset more than one year and the gain is long-term, taxed at 0%, 15% or 20%. Hold it a year or less and it is short-term, taxed as ordinary income at your regular bracket, which currently tops out at 37%. On a large sale the holding period is often worth more than any other single decision, and it is measured to the day.
If you took depreciation on a rental or a business asset, that depreciation comes back before anything gets the favorable capital gains rate. On real property, the portion attributable to prior depreciation is unrecaptured Section 1250 gain and is taxed at a maximum 25% rate, not 15% or 20%. On equipment and other personal property, Section 1245 recapture is worse still and is taxed as ordinary income.
This is the single most common surprise on an investment property sale. An owner runs the numbers at 15% or 20%, forgets a decade of depreciation deductions, and is short by six figures. The calculator above asks for prior depreciation for exactly this reason. A few other categories also break the 20% ceiling: collectibles such as coins and art are taxed at up to 28%, and so is the taxable portion of qualified small business stock under Section 1202.
For tax years 2025 through 2028, taxpayers who reach age 65 by the end of the year can claim an additional $6,000 deduction, $12,000 for a married couple where both spouses qualify. It begins phasing out at $75,000 of modified AGI, or $150,000 filing jointly, and is fully gone by roughly $175,000 and $250,000.
A large one-year gain blows straight through those thresholds and wipes the deduction out. Spread the same gain across several years and much of it survives. Enter your age above and the calculator shows how much of the deduction each path actually keeps.
The tax depends heavily on what you are selling and how you sell it.
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.
Call 213-340-2018 Run the Numbers →