Tax Planning Tool
Wealth Transition &
Tax Harvesting Analysis
Compare lump-sum liquidation vs. managed transition. Quantify tax alpha and compounded wealth advantage over your selected timeline.
4Scenarios
WA · CAState Tax
23.8%Fed Rate
Client:
Date:
📊 Position Details
Lump Sum Tax
$0
Managed Tax
$0
Tax Alpha Saved
$0
Wealth Advantage
$0
Click any card to show/hide the year-by-year breakdown table
| Year | Beg. Balance | Divestment | Harvest Shield | Tax Paid | Shadow Risk | End Value |
|---|
Scroll horizontally to view full breakdown
1. How Lump Sum Tax Is Calculated
Immediate tax cost of exiting the entire position in a single tax year — the worst-case scenario before any active management.
Tax = (Gain × 23.8%) + (Gain − Exemption) × State%
2. Managed Summed Liability
Total of all taxes paid annually across the managed transition period, using the harvest shield to offset gains each year.
Σ (Yearly Gain − DI Shield) × Combined Rate
3. Understanding Tax Alpha
Hard-dollar savings generated through active tax-lot management — the quantifiable value of the managed strategy.
Alpha = [Lump Sum Tax] − [Managed Tax]
4. Wealth Advantage
Total benefit of Tax Alpha plus compounded growth on deferred capital over the full transition period.
Shadow Risk: Unrealized tax liability remaining on undivested shares at any given year.
Shadow Risk: Unrealized tax liability remaining on undivested shares at any given year.