Free · Nonprofit · Education only

Free Big Sale Tax Worksheet

By , founder, Retirement Literacy Foundation · Updated
Enrolled Agent, admitted to practice before the IRS.

Selling a business, a rental, land or a home with a large gain? This one page shows what the sale really costs in tax: federal capital gains, depreciation recapture, the 3.8% net investment income tax and state tax, and the ways sellers spread or defer it.

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One page that shows every tax layer on your sale: federal capital gains, depreciation recapture, the 3.8% net investment income tax, and state tax.

Free education from a 501(c)(3) nonprofit. Nothing is sold.

What is on the page

Your sale, layer by layer

  1. Adjusted basis, step by step. What you paid, plus improvements, minus depreciation and any basis carried over from an earlier 1031 exchange.
  2. Your gain, split by rate. The depreciation recapture slice (up to 25% on buildings) versus the 0%, 15% or 20% capital gain, plus the 3.8% net investment income tax check.
  3. State tax. California taxes the whole gain as ordinary income (up to 13.3%); some states tax none of it.
  4. The cash check. Does the cash you walk away with at closing cover the tax, once the loan payoff is counted?
  5. Ways to spread or defer it. Questions to take to your CPA about a 1031 exchange, a Delaware statutory trust, a Section 453 installment sale or simply paying the tax in the right year.

The Retirement Literacy Foundation is a 501(c)(3) public charity (EIN 41-5062266). General education, not tax, legal or investment advice. Prepared by Hans Goldstein, EA, retirement educator. Admitted to practice before the IRS.

Hans Goldstein, founder of the Retirement Literacy Foundation
Who made this worksheet
Hans Goldstein, EA, Founder and Executive Director, Retirement Literacy Foundation

The Retirement Literacy Foundation is a 501(c)(3) public charity (EIN 41-5062266) that gives free, plain-English retirement education to Southern California retirees. Hans is its unpaid Executive Director and draws no salary from the Foundation.

What it costs: nothing. The worksheet and the class are free. Nothing is sold.

If you leave a phone number: we may call you about your request. Those calls are educational, and nothing is offered or sold.

Questions: call 714-584-4921 or read about the Foundation. General education, not tax, legal or investment advice.

Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS.