Portfolio Liquidity & Tax-Gross-Up Analysis · IRC §§ 1(h), 1411, 163(d) & Reg U / PAL

Sell Investments vs. Borrow (SBLOC / PAL) Analyzer

Need liquidity for a real estate bridge, tax bill, or business investment? Compare liquidating appreciated taxable ETFs/stocks (paying LTCG + 3.8% NIIT + State tax and permanently losing compounding on the grossed-up sale) against borrowing via a Securities-Backed Line of Credit (SBLOC / Schwab Pledged Asset Line).

Visual Explainer · The Capital Gains Gross-Up Penalty

Why Selling Low-Basis Assets Costs Far More Than the Headline Tax Rate

CASH LIQUIDITY NEEDED $400,000 Portfolio: $2,000,000 (20% Basis) Initial LTV: 20.0% · 3-Yr Horizon PATH A · SELL INVESTMENTS NOW Must Sell $544,069 ($144k Tax) Permanently loses compounding on $544,069 PATH B · BORROW VIA SBLOC / PAL $0 Tax · $75,000 Total Interest Full $2,000,000 compounds untouched NET WEALTH GAIN +$201,039 Borrowing vs. Selling at Yr 3
Calculating...
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1Liquidity & Portfolio Terms
Click any i to inspect the tax gross-up & LTV math.
Exact after-tax cash required for your purchase, bridge, or tax payment.
SOFR + Custodian Spread
Schwab PAL std: 70%
If § 163(d) deductible
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Year-3 Net Portfolio Wealth Comparison (Sell vs. Borrow)

Break-Even SBLOC Rate: 19.6%
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Tax Gross-Up, Break-Even Rate & Collateral Drawdown Stress-Test Radar

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Year-by-Year Compounding vs. Interest Cost Schedule

Year Path A (Sell Now) Portfolio Path B (SBLOC) Full Portfolio Cum. SBLOC Interest Paid Path B Net After Loan Payoff Net Advantage of Borrowing
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Your Liquidity & Pledged Asset Line Playbook