A tool designed to estimate the tax liability resulting from profits realized on the sale of capital assets within New York City. For example, an individual selling stock held for more than a year at a profit would utilize such a device to project the combined federal, state, and city tax implications of the transaction.
These instruments offer significant value in financial planning. Understanding the tax consequences associated with investment decisions allows for more informed asset allocation, tax loss harvesting strategies, and overall wealth management. Historically, calculating these liabilities necessitated complex manual computations, making these tools invaluable for efficiency and accuracy.