A worked example
An exit, inside the rest of the plan
Priya, 41, married, takes a $180k salary from the C-corp she founded and holds stock with a $20k basis. An acquirer has put $12M of proceeds on the table; she has held the stock four years.
“What does selling actually leave me — and does it change when we could stop working?”
What the projection shows
The sale taxed inside the year it happens: the §1202 exclusion at four years versus five, the capital-gains tax stacked on that year's own salary, and what the net does to net worth over the next thirty years. The Financing & exit page computes the proceeds from a cap table; this is what they do once they land.
What else the projection found
Nothing here was left blank. These follow from the figures above, under the assumptions this example states.
- The sale makes $11,980,000 of gain and §1202 excludes $8,985,000 of it, leaving $2,995,000 taxable and $958,184 of tax.
- §1202 excludes $8,985,000 of the $11,980,000 gain on the federal return, and the state charges $1,592,635 that year against $9,193 without the sale.
- §1202 excludes $11,980,000 of the $11,980,000 gain on the federal return, and the state charges $1,594,885 that year against $9,449 without the sale.
The planner arrives with this household already filled in. Change anything — the balances, the ages, the assumptions — and run it as yourself.
A projection under stated assumptions, not financial or tax advice.