Sale vs. Deferral

Compare selling an appreciated asset outright against selling inside a tax-deferred structure, with proceeds compounding over your horizon.

Inputs

Asset value ($)

Cost basis ($)

Combined tax rate on gain (%)

Expected annual return (%)

Horizon (years)

Estimate

Updates as you type. Simplified estimate; assumptions below.

Tax if sold today-

Outright sale: value at horizon-

Deferred structure: pre-tax value at horizon-

Deferred: after tax paid at horizon-

Advantage of deferral-

Assumptions and limits. Assumes the full deferred balance compounds at the stated return and the entire gain is taxed once at the horizon at the same rate. Real structures (charitable remainder trusts, opportunity funds, exchange funds) each modify this: payout requirements, character ordering, charitable remainders, basis adjustments, and fee loads. Treat this as the upper bound of pure deferral value. Estimates are educational, not advice or a projection. State taxes, alternative minimum tax, phase-outs, and individual facts can change results materially.

Want this run on your actual facts?

The real model includes your state, basis lots, AMT position, and the strategies interacting with each other.

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