How are capital gains calculated and taxed in the Quicken Planner?

Quicken calculates capital gains based on how much you paid for an asset or investment, and how much it's worth when you sell it. Quicken’s Planner also automatically figures and takes out taxes on the capital gains when the investments are sold. However, the Quicken planner’s projection only “sells” investments in the future when they are needed to cover expenses. Otherwise they grow at the rate of return specified in the Rate of Return section.

Quicken assumes you will pay the taxes on your portfolio gains out of the portfolio itself. For example, if you have a $1,000 investment in your taxable portfolio and you have set your taxable portfolio to get an average rate of return of 10 percent, then your gain for the year is $1,000 x 10 percent = $100. However, if your tax rate is 25 percent, only $75 of that gain is reinvested ($100 x 25 percent = $25 tax, $100 - $25 = $75 reinvested).

How much of your taxable return will be subject to taxes is controlled by a percentage you set in the Rate of Return section.