Good news: Texas has no state income tax, so no state capital gains tax. The catch: you still owe up to 20% federal plus the 3.8% NIIT, and on a big sale, that federal bite alone is substantial. Here's how to defer it.
A plain-English guide for sellers: how a structured installment sale defers the tax when you sell a business, practice, or property — the math, the alternatives, and how to know if your deal fits.
Drop your info — instant PDF download + within 1 business day Hans will email a preliminary read on which structure fits your deal. No retainer. Carrier compensates the broker — not you.
📞 Hans Goldstein · 213-290-4977 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC
Texas is a great place to sell, there's no state income tax, so no state capital gains tax. But don't let that lull you: the federal capital gains rate (up to 20%) plus the 3.8% Net Investment Income Tax still apply, and on a large business or property sale that federal bite alone can run to roughly a quarter of your gain in a single year.
With Texas's booming business and real estate market, a lot of sellers are realizing very large gains, a company sale, a portfolio of rentals, ranch land, an appreciated stock position. No state tax is a real advantage, but recognizing the entire federal gain in one year still pushes you into the top 20% bracket and triggers the 3.8% surtax.
A §453 structured installment sale spreads the proceeds, and the federal gain, across future years, keeping more of it in the lower 15% bracket and reducing or avoiding the 3.8% NIIT in some years. Payments are backed by an A-rated carrier. It works for a business, real estate, or stock, and unlike a 1031, no replacement property is required.
Texas saves you the state tax, but the federal tax on a large sale is still the biggest check most people ever write. Estimate it on the calculator (select Texas) and plan the structure before you close.
No. Texas has no state income tax, so there is no state capital gains tax. However, you still owe federal capital gains tax (up to 20%) and the 3.8% Net Investment Income Tax on a sale.
No state tax, but federally up to 20% plus the 3.8% NIIT, roughly a quarter of a large gain in the year of sale. Depreciation recapture on equipment or property is taxed on top of that.
Yes. A §453 structured installment sale spreads the federal gain over multiple years, keeping more of it in the 15% bracket and reducing the 3.8% surtax. The lack of state tax doesn't affect this federal strategy.
Often yes, the federal 20% rate plus the 3.8% NIIT on a large one-year gain is still substantial, and spreading the gain can meaningfully lower it while providing guaranteed income.
Use the free calculator and select Texas (it applies $0 state tax), and it estimates your federal capital gains, NIIT, and recapture, plus the savings from deferring.
Before you sign anything, run your numbers with someone who structures the deal to be tax-smart and audit-ready from day one.
Call 213-340-2018 Run the Numbers →