Portfolio Disposition Tax Basis Calculator

Portfolio sale triggers tax. This calculator sizes recapture and gain.

Sale price

Adjusted basis

Accumulated depreciation

LTCG + NIIT %

Recapture rate %

After-tax proceeds

$36,293,000

Total tax

$5,707,000

Total gain

$23,500,000

How the math works

Gain = sale − basis. Recapture = min(gain, accum dep). LTCG gain = gain − recapture. Tax = recapture × 25% + LTCG × rate.

Portfolio dispositions often defer into 1031 or 721 structures to delay the tax hit. The calculator here shows the full-sale-no-deferral baseline — use this number as the reference point when evaluating whether deferral structures actually beat the after-tax outright-sale economics.

How to Use

Enter sale price.
Enter adjusted basis.
Enter accumulated depreciation.
Enter LTCG rate %.
Enter recapture rate %.
Read after-tax proceeds.

Frequently Asked Questions

Depreciation recapture?

IRC §1250 recapture: depreciation on real property taxed at 25% max federal rate (lower than ordinary income). Most real estate recapture at 25%. Equipment (§1245): taxed at ordinary rates, not capped at 25%.

Computation?

Gain = sale − (basis − accumulated depreciation). Recapture = min(gain, accumulated depreciation). LTCG-eligible gain = gain − recapture. Tax = recapture × 25% + LTCG × LTCG rate + NIIT.

Cost segregation effects?

Cost seg accelerates depreciation (5/7/15 yr personal property vs 27.5/39 yr real). Can generate §1245 recapture at ordinary rates at sale. Trade-off: time value of deductions vs higher recapture tax. Usually net positive, sometimes not.