BlueLine Advisors
Business Sale & Liquidity Planning Tool
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 tax brackets. Business sales involve substantial complexity beyond what this tool can model.
📅 Based on 2026 federal tax brackets
💼 Asset sale modeling
🔒 No sign-up required
Estimated Net Proceeds After Federal Tax
$2,485,000
Effective federal tax rate on sale: approximately 24.0% — illustrating how asset allocation and current-year income interact with federal tax law.
Total sale price$3,500,000
Less: selling costs−$175,000
Less: basis recovered−$500,000
Less: estimated federal tax−$340,000
Estimated Federal Tax Breakdown
Different asset categories receive different federal tax treatment. Goodwill, inventory not held as ordinary stock-in-trade, and real estate are generally taxed at long-term capital gains rates. Depreciation recapture on equipment is taxed at ordinary income rates (capped at 25% for real property under §1250).
Long-Term Capital Gains
$240,000
On goodwill, intangibles, and real estate gains. Federal LTCG rates of 0%, 15%, or 20% depending on total income.
Ordinary Income Tax
$78,000
On depreciation recapture (equipment) and inventory. Taxed at marginal ordinary rates up to 37%.
Net Investment Income Tax
$22,000
3.8% surtax on investment income above $200K single / $250K joint thresholds (not inflation-adjusted).
Where the sale price goes
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 stated planning horizon. This is a simplified analysis that does not model future taxes on portfolio withdrawals, Social Security, healthcare costs, or other income sources.
Estimated Sustainability
Through age 92+
Proceeds may support stated income need through planning horizon
Initial Withdrawal Rate
8.0%
Of net proceeds, in first full year
Balance at Horizon
$420,000
Estimated remaining at planning horizon
Based on the figures entered, the net proceeds may support the stated annual income through the planning horizon at the assumed return. Real-world outcomes depend on portfolio performance, taxes on withdrawals, and changes in spending.
Considerations Not Modeled
Important Assumptions
This illustration models a federal-tax-only asset sale using 2026 federal brackets. Long-term capital gains thresholds shown are illustrative 2026 estimates: 0% rate up to approximately $96K single / $96K joint taxable income, 15% rate up to approximately $533K single / $600K joint, 20% above. Actual 2026 LTCG thresholds may differ when finalized. 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 like-kind exchanges, no Opportunity Zone deferrals, no Section 1202 (QSBS) exclusion (which applies only to certain original-issuance C-corp stock held 5+ years), no Section 1244 ordinary loss treatment, no charitable strategies (Donor-Advised Funds, CRTs, etc.), no state or local taxes, no Alternative Minimum Tax. The post-sale sustainability projection assumes constant returns, no inflation adjustment to desired income, no future taxes on portfolio withdrawals, and no other income sources. Cost basis allocation between asset categories follows the entered percentages proportionally, which simplifies real-world basis allocation rules.
Want to discuss your specific business sale planning?
Business sale transactions involve substantial complexity — tax treatment depends on entity type, asset allocation negotiations with the buyer, installment sale options, state and local tax exposure, charitable strategies, estate planning integration, and the structure of any seller financing or earnouts. The federal tax math is only one component of the analysis. A BlueLine Advisors consultation can help review your specific situation in coordination with your CPA, attorney, and M&A advisor.
Schedule a Free Consultation →
