The links below correspond to screens in the software.
This report is useful in situations in which there are securities with significant untaxed capital gain.
Untaxed gain is the amount by which the value of the property exceeds the tax basis.
There can also be untaxed loss, if the tax basis exceeds the value of the property.
Untaxed gains and untaxed losses can offset each other.
The tax liability would be on the net untaxed gain.
In this way, you can think of net untaxed capital gain as a built-in liability which decreases the actual value of the securities.
Roughly speaking, the amount of the liability is the capital gains tax rate multiplied by the untaxed again.
So if there is $10,000 of untaxed again, and if the applicable capital gains tax rate is 15%, then the amount of the liability would generally be 15% of $10,000, or $1,500.
In this case, the after-tax value of the securities would be $10,000 minus $1,500, or $8,500.
In order to equalize assets, sometimes people like to attempt to equalize the net untaxed gain, that is, to divide the investment assets in such a way that each party ends up with the same amount of untaxed capital gain.
Or, alternatively, the property division is skewed away from 50/50, to reflect the built-in liability represented by the untaxed capital gain.
You enter the percent of each asset kept by each party, and the screen shows you the impact of that change on the untaxed capital gain in that asset held by each party and the total untaxed capital gain.
Another way to look at after-tax impact is to use the software’s Property After Tax screen.
This will be a comprehensive way to examine the after-tax value of all assets.