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Portfolio Asset Sale Allocation Calculator

Portfolio exits allocate proceeds many ways.

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Net distributable

$12,660,000

Tax due

$6,440,000

Gross gain

$23,000,000

How the math works

Gain = gross price − basis. Tax = gain × rate. Net = gross − debt − fees − tax.

$45M − $22M = $23M gain. × 28% = $6.44M tax. Net $45M − $25M − $900k − $6.44M = $12.66M distributable.

How to Use

  1. Enter gross sale price.
  2. Enter debt payoff.
  3. Enter sale fees (broker, legal).
  4. Enter tax basis.
  5. Enter tax rate %.
  6. Read net distributable.

Frequently Asked Questions

Allocation order?

1) Debt payoff (including defeasance/yield maintenance). 2) Sale fees (broker 1-3%, legal, escrow, title). 3) Tax (on gain over basis × rate). 4) Distributions per LP agreement waterfall (preferred return, then promote).

Typical fees?

Broker 1-2% institutional, 3-6% smaller deals. Legal $25k-$250k. Escrow/title 0.3-0.8%. Defeasance for CMBS: 3-8% of balance. Total fees typically 2-5% of gross price. Plan carefully in proceeds waterfall.

Tax considerations?

Long-term capital gain 20% federal + state + NIIT. Depreciation recapture 25%. 1031 exchange defers tax. Installment sale spreads tax. Opportunity Zone rolls into QOF deferring tax. Structuring materially affects net to investors.

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