Understand the tax impact before the sale.
Plan for the potential federal tax consequences of selling appreciated real estate, investments, or a business interest — before the transaction is complete.
A clear pre‑sale review — in seven steps.
- 01
Identify the proposed transaction
- 02
Gather acquisition and improvement records
- 03
Establish adjusted basis
- 04
Estimate the potential gain
- 05
Review timing and relevant tax considerations
- 06
Coordinate with your legal and financial professionals
- 07
Prepare for estimated payments and reporting
The tax questions worth answering before you close.
When to Begin Planning
Ideally before an offer is signed — while structure, timing, and reporting are still open.
Adjusted Basis
Your basis is the starting point for calculating gain. Getting it right matters.
Capital Improvements
Documented improvements can meaningfully change the gain on real estate.
Depreciation Recapture
Rental and business property carry recapture rules that shape the outcome.
Short‑term vs. Long‑term
Holding period drives federal tax treatment — timing is a planning lever.
Real Estate Sales
Primary residence, rental, and investment property have distinct considerations.
Investment Sales
Cost basis, lot selection, and timing across accounts can all affect the result.
Business‑Interest Sales
Asset vs. stock, allocation, and installment considerations for owner exits.
Capital Losses
Losses may offset gains and, within limits, ordinary income.
Estimated Payments
A large gain often triggers additional estimated payment obligations.
Coordination
We work with your attorney, broker, qualified intermediary, and financial advisor.
Common questions before a sale.
When should I contact you about a sale?
As early as possible — ideally while the transaction is still being structured. Once the deal closes, most planning options are off the table.
Do you provide legal or investment advice?
No. We provide tax preparation and planning as an Enrolled Agent firm. We coordinate closely with your attorney, broker, and financial advisor.
What records should I bring?
Original purchase documents, records of improvements or basis adjustments, prior depreciation schedules if applicable, and any offer or draft transaction documents.
Can you guarantee a specific tax outcome?
No. Tax treatment depends on your specific facts and circumstances, and no specific savings or refund result is promised or guaranteed.
Tax treatment depends on the client’s specific facts and circumstances. Thornton Tax & Financial Services does not provide legal or investment advice.
Have a sale in the next 3–12 months?
Start with a pre‑sale tax review. We’ll walk through timing, basis, and the tax picture before decisions are made.