Capital-Gains PlanningBefore the Sale.
Understand the potential federal and California tax consequences of selling appreciated real estate, investments, or a business interest — before the transaction is complete.
When to seek planning
Before you list a property, sign a purchase agreement, transfer a business interest, or execute a large portfolio sale. Even a short conversation early can change what's available.
Real estate sales
Rental property, primary residences with meaningful appreciation, and 1031-adjacent scenarios. We help you understand basis, depreciation recapture, and California-specific exposure.
Investment gains
Concentrated stock positions, employer equity, and taxable brokerage rebalancing. Coordinating harvesting, wash-sale rules, and timing across a full year.
Business & partnership-interest sales
Asset vs. stock treatment, allocated basis, ordinary income components, and the interplay with entity structure.
Understanding adjusted basis
The most common source of avoidable tax on a sale. Reconstructing basis correctly — improvements, prior depreciation, contributions — often changes the picture materially.
Capital losses & gain harvesting
Existing carryforwards, current-year losses, and coordinated harvesting to offset gains where appropriate.
Estimated tax payments
A large gain reshapes your quarterly obligations. We model federal and California safe harbors so a good year doesn't become a surprise letter.
California tax considerations
California treats capital gains as ordinary income and does not offer a preferential rate. Planning has to account for both federal and state exposure together.
Coordination with your team
We work alongside attorneys, brokers, financial advisors, and qualified intermediaries — filling the tax role, not replacing the others.
What to bring to the initial review
Prior returns, transaction summaries, closing statements or LOIs, K-1s, depreciation schedules, and anything else that describes basis or timing.
Request a Pre-Sale Tax Review.
Share a few details about the transaction you're considering. Ed will follow up with next steps and, when helpful, a short checklist of what to gather before an initial call.
Common questions before a pre-sale review.
- How early should I involve a tax advisor?
- Ideally, when the sale becomes a real possibility — not after signatures. Basis reconstruction, timing choices, and estimated payment planning all become easier the earlier they're addressed.
- Do you provide legal or investment advice?
- No. Hernandez Tax & Advisory focuses on tax and accounting. We coordinate with your attorney and financial advisor; we don't replace them.
- Can you guarantee tax savings?
- No responsible advisor can. What we can do is help you understand your actual exposure, the levers available, and the trade-offs — so you can make an informed decision.
- Do I have to become a full-service client?
- Not necessarily. Many clients start with a focused pre-sale review and continue only with what makes sense for their situation.
Disclaimer
Hernandez Income Tax & Bookkeeping Service Inc. does not provide legal or investment advice unless separately qualified to do so. Tax treatment depends on individual circumstances. No savings or outcome is guaranteed. Visitors should seek advice from a qualified professional before completing a transaction.