Business Sale & Liquidity Planning Tool

Preparing for a business sale or liquidity event involves investment, tax, retirement, and long-term planning considerations. BlueLine Advisors works with business owners locally and nationwide to help evaluate post-sale strategies and wealth planning opportunities.

Model your after-tax proceeds

Model the after-tax proceeds from a small business asset sale and explore whether the net amount may support your desired post-sale income. The tool illustrates federal tax treatment based on how the sale price is allocated across asset categories, using 2026 IRS brackets. Business sales involve substantial complexity beyond what this tool can model.

📅 2026 federal tax brackets 💼 Asset sale modeling 🔒 No sign-up required
Sale Information
$
$
$
Sale Price Allocation 100%
%
%
%
%
Allocation should total 100%. Typical small business sales allocate 60–75% to goodwill, which receives favorable long-term capital gains treatment.
Other Income This Year
$
$
$
Post-Sale Planning
yrs
yrs
$
%
Estimated Net Proceeds After Federal Tax
—
—
Total sale price—
Less: selling costs—
Less: basis recovered—
Less: estimated federal tax—
Estimated net proceeds—

Estimated Federal Tax Breakdown

Different asset categories receive different federal treatment. Goodwill, inventory, and real estate gains are generally taxed at long-term capital gains rates. Depreciation recapture on equipment is taxed at ordinary income rates.
Long-Term Capital Gains
—
On goodwill, intangibles, and real estate gains. Federal LTCG rates of 0%, 15%, or 20% depending on total income.
Ordinary Income Tax
—
On depreciation recapture (equipment) and inventory. Taxed at marginal ordinary rates up to 37%.
Net Investment Income Tax
—
3.8% surtax on investment income above $200K single / $250K joint thresholds (not inflation-adjusted).
Where the sale price goes
Net to you Federal tax Selling costs

Post-Sale Income Sustainability

Illustrative projection of whether the net after-tax proceeds, invested at the assumed return, may support the desired annual income through the planning horizon. Simplified — does not model future taxes on withdrawals, Social Security, or healthcare.
Estimated Sustainability
—
Initial Withdrawal Rate
—
Balance at Horizon
—
—
Important Assumptions This illustration models a federal-tax-only asset sale using 2026 federal brackets. LTCG thresholds are illustrative 2026 estimates (0% up to ~$96K, 15% up to ~$600K joint, 20% above). NIIT thresholds ($200K single / $250K joint) are statutory and not inflation-adjusted. The tool assumes the entire sale closes in one tax year, no installment sale treatment, no Section 1031 exchanges, no Opportunity Zone deferrals, no Section 1202 (QSBS) exclusion, no Section 1244 treatment, no charitable strategies, no state or local taxes, no AMT. The sustainability projection assumes constant returns, no inflation adjustment to income, no future taxes on withdrawals, and no other income. Basis is allocated across asset categories proportionally, which simplifies real-world rules.

Want to discuss your specific business sale planning?

Business sale transactions involve substantial complexity — tax treatment depends on entity type, asset allocation negotiations, installment options, state and local exposure, charitable strategies, estate integration, and seller financing or earnouts. The federal tax math is only one component. A BlueLine Advisors consultation can help review your situation in coordination with your CPA, attorney, and M&A advisor.

Schedule a Free Consultation

Important Disclosures

This material is provided by BlueLine Advisors LLC ("BlueLine") for informational and educational purposes only and is not intended as investment, tax, or legal advice. Nothing herein should be construed as a recommendation to buy or sell any security or to adopt any investment strategy. BlueLine Advisors LLC is a registered investment adviser with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training.

All information reflects the views of BlueLine as of the publication date and is subject to change without notice. Forward-looking statements, projections, outlooks, and illustrative examples are not guarantees of future performance and are based on assumptions that may not be realized. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Asset values fluctuate, and investors may receive back less than the amount invested. Diversification does not ensure a profit or protect against loss in declining markets.

Benchmark and index performance is shown for reference only. Indices are unmanaged, are not available for direct investment, and do not reflect the deduction of advisory fees, transaction costs, or other expenses. Any charts, graphs, or tables are for illustrative purposes only and should not be construed as investment advice.

Key assumptions embedded in this tool include: 2026 federal tax brackets and illustrative 2026 long-term capital gains thresholds; tax treatment driven by the user's allocation of sale price across goodwill, equipment, inventory, and real estate; the 3.8% Net Investment Income Tax applied above statutory thresholds; and a post-sale sustainability projection using a user-specified assumed return. This tool models federal tax only and assumes a single-year closing. It does not account for state or local taxes, installment-sale treatment, Section 1031 exchanges, Section 1202 QSBS exclusion, charitable strategies, AMT, future taxes on portfolio withdrawals, or the specific terms of any transaction. Actual outcomes will vary substantially. Consult a qualified tax professional, financial advisor, and transactional counsel before making any decisions.