View the results of your proposed sale under Step 3 of the Estimator window. After you enter the number of shares and sale prices for your proposed sales, the Capital Gains Estimator displays the gross proceeds, gain, approximate federal and state taxes, and net proceeds. Click a link below for more information.
- Taxable Gains on Proposed Sales
Taxable Gains on Proposed Sales shows the amount of money resulting from the proposed sale (whether gain or loss) that would affect your taxes. The table also shows the type of gain or loss—for example, short term, long term, ordinary income, and so on. If you have a capital loss the amount appears in red.
- Total Gross Proceeds from Proposed Sales
Total Gross Proceeds from Proposed Sales shows the total amount of cash generated by the proposed sales in this scenario before adjusting for any taxes withheld or set aside.
- Estimated Federal Tax Impact
Estimated Federal Tax Impact gives you an idea how much more federal income tax you'll have to pay if you sell the securities as proposed. If you're using Tax Planner rates, your income and marginal tax rate according to the Tax Planner are included in the calculation. If you chose one of the other Federal Tax Rate options, those rates are applied to the gain or loss. If the proposed sales result in a reduction of your total estimated federal tax, a zero appears.
- Estimated State Tax Impact
Estimated State Tax Impact shows the estimated state income tax due based on the state rates entered in the Tax Rates window for this scenario, though the calculations for state tax don't include ESPP or ESOG sales and can't include ordinary income from such sales. This value is based strictly on the estimated gain/loss and the tax rates you provided. Tax Planner information is not included in the calculation. If the proposed sales result in a reduction of estimated state tax, a zero appears.
- Net Proceeds from Proposed Sales
Net Proceeds from Proposed Sales shows an estimate of the cash you would have available after executing the proposed sales and setting aside money to pay income tax.
- Estimated Federal Tax Due/Refund
Estimated Federal Tax Due/Refund (only available if you use Tax Planner data) shows the estimated federal tax due (if you have an overall gain for your year-to-date sales) or coming back to you (if you have an overall loss for your year-to-date sales), based on your Tax Planner data in conjunction with your proposed sale.
- Before Proposed Sales shows the current Tax Planner estimate of your tax situation without taking into account the sale you've just proposed.
- After Proposed Sales shows a Tax Planner estimate of your tax situation if you go through with your proposed sale.
Detailed Calculations provides two tables that give more details on your current situation with regards to capital gains. By default these tables are hidden. Click the link to display the table you want to view.
- Capital Gains Tax Before Proposed Sales
Capital Gains Tax Before Proposed Sales shows all transactions for the current year that have capital gains implications. The tables show such information as the length of the holding period for the securities you've sold, adjusted gain or loss for each sale, your marginal tax rate, and the federal tax you owe (based on the tax rate you've given the Capital Gains Estimator). The sale you've just proposed is not included.
- Capital Gains Tax After Proposed Sales
Capital Gains Tax After Proposed Sales shows all transactions for the current year, including the sale you've just proposed, that have capital gains implications. The tables show such information as the length of the holding period for the securities you've sold, adjusted gain or loss for each sale, your marginal tax rate, and the federal tax you owe (based on the tax rate you've given the Capital Gains Estimator).
If you chose to use your Tax Planner data and rates, you may also see information about whether the proposed sales move you into a higher tax bracket.
Notes
After you set up a scenario, it remains until you explicitly change or delete proposed sales.
