Calculator inputs
Example data table
| Example Item | Value |
|---|---|
| Asset Type | Section 1245 property |
| Sale Price | 220,000.00 |
| Selling Expenses | 12,000.00 |
| Original Basis | 150,000.00 |
| Capital Improvements | 10,000.00 |
| Depreciation Taken | 40,000.00 |
| Adjusted Basis | 120,000.00 |
| Net Proceeds | 208,000.00 |
| Total Gain | 88,000.00 |
| Ordinary Recapture | 40,000.00 |
| Long-Term Capital Gain | 48,000.00 |
| Estimated Total Tax | 28,624.00 |
| After-Tax Cash | 179,376.00 |
Formula used
Adjusted Basis = Original Cost Basis + Capital Improvements − Depreciation Taken
Net Proceeds = Sale Price − Selling Expenses
Total Gain or Loss = Net Proceeds − Adjusted Basis
Short-Term Gain = Total Gain when holding period is under 12 months
Section 1245 Recapture = Lesser of Depreciation Taken or Total Gain
Unrecaptured 1250 Gain = Lesser of Depreciation Taken or Total Gain
Long-Term Capital Gain = Total Gain − Recapture Portion
Ordinary Tax = Ordinary Gain × Ordinary Rate
1250 Tax = Unrecaptured 1250 Gain × 1250 Rate
Capital Gains Tax = Long-Term Capital Gain × Capital Gains Rate
NIIT = Eligible Long-Term Gain × NIIT Rate
State Tax = Taxable Gain × State Rate
After-Tax Cash = Net Proceeds − Total Estimated Tax
This model is intentionally simplified for planning. Actual filings may require asset allocation, installment reporting, entity-level rules, passive limits, and jurisdiction-specific treatment.
How to use this calculator
- Pick the asset type that most closely matches the sale.
- Enter the gross sale price and expected selling expenses.
- Fill in original basis, improvements, and depreciation claimed.
- Enter the holding period in months.
- Set the tax rates that fit your situation.
- Enable NIIT if you want that extra estimate included.
- Submit the form to see gain split, taxes, and after-tax cash.
- Use the CSV and PDF buttons to save the result.
FAQs
1) What does this calculator estimate?
It estimates adjusted basis, net proceeds, gain or loss, recapture-style amounts, blended taxes, and after-tax cash from a business asset sale using your own rates.
2) Why is depreciation important here?
Depreciation reduces adjusted basis, which can increase gain. It can also shift part of the gain away from favorable capital treatment and into recapture-style taxation.
3) Does the calculator handle every tax rule?
No. It is a planning model. Actual tax treatment may depend on entity structure, purchase price allocation, state conformity, passive rules, installment reporting, and elections.
4) What is the difference between 1245 and 1250 here?
This version uses a simplified split. Section 1245 property sends depreciation-related gain to ordinary recapture. Section 1250 real property uses a separate 1250 rate field.
5) What if my sale produces a loss?
The calculator shows the loss and estimates a possible tax benefit using your loss relief rate. Real deductibility depends on asset type and other return factors.
6) When should I include NIIT?
Include it if your facts suggest the surtax may apply to the investment-related portion of the gain. Leave it off when you want a simpler base estimate.
7) Can I use this for goodwill or land?
Yes. Choose the non-depreciable option. In this model, that routes gain directly toward long-term capital treatment when the holding period is long enough.
8) What should I review before signing a sale?
Review basis records, depreciation schedules, selling costs, asset allocation, state taxes, expected hold period, and whether special recapture or surtax rules may apply.