Capital Liquidation Engine

Calculate corporate asset disposition taxes and net retention across variable filing structures.

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C-Corp Flat Rate

Adjusted Gain
$2,900,000.00
Tax Liability
$627,000.00
Net Retention
$3,623,000.00
Gain Allocation ModelFIG 1.1
Recapture Gain
Capital Gain
Tax Liability
Net Retention

Cost Basis and the Recapture Axiom

Under IRC Section 1245 and 1250, the disposition of business assets requires a rigorous accounting of accumulated depreciation. This "recapture" mechanism ensures that gains attributable to prior tax deductions are taxed at ordinary rates rather than preferential capital gains rates.

For C-Corp structures, the allocation of sale proceeds against the original basis determines the immediate liquidity requirements of the firm. Failure to account for the unrecaptured gain can lead to significant shortfall during the quarterly filing cycle.

The Recapture Axiom

"The fiscal liability of an asset is not merely a product of its appreciation, but a debt owed to the depreciation schedules of the past."

The case study of the 2022 Hudson Real Estate liquidation illustrates this perfectly: by failing to separate the land value from the structural improvements, the firm over-estimated their net retention by 14%, leading to a forced bridge loan at unfavorable rates.