Robert & Lisa Chen

CriticalDeliveredAdvisory client

W-2HNWMarried filing jointlyCA, OREleanor VanceQuarterlyReturn on file

Est. current income

$2,910,000

vs $812,000 prior year

Effective rate

27.4%

Marginal bracket

37% ordinary / 23.8% LTCG+NIIT

Dec 31 hard stops

At a glance

Income trend

+258%

$812K → $2.9M AGI

Next-dollar rate

24%

Marginal · MFJ

Cliffs to watch

NIIT threshold
Top of 20% LTCG bracket
IRMAA top tier

This year: Private company sale closed/closing in 2026 (~$2.4M gain)

Entity exposure

Rental / royalty (Sch E)

Schedules B, D, E

State footprint

CA, OR

Multi-state — check apportionment & PTET

Income mix

4 sources

W-2 wages · qualified dividends · long-term capital gains

Year-over-year briefing

2026 Return Summary (projected)

AGI: $2,910,000
Taxable income: $2,842,000
Total tax: $778,700
Effective / marginal: 27.4% · 37% / 23.8% LTCG+NIIT
Withholding + estimates: $180,000
Estimated balance due: $598,700

Estimated Payments & Safe Harbor

Paid

$45,000

Paid

$45,000

Paid

$46,000

Due

$64,530

Safe harbor (110% of 2025 tax ($182,300))Shortfall

Paid $136,000 of $200,530$64,530 due by Jan 15

3-Year Trend

Metric	2024	2025	2026proj	Change
AGI	$768,000	$812,000	$2,910,000	+279%
Total tax	$168,700	$182,300	$778,700	+362%
Effective rate	23.7%	24.3%	27.4%	+16%

Carryforward Ledger

Passive activity loss
From rental (Sch E), 2023 origin
$31,000
Charitable contribution
2025 excess over 30% AGI limit
$18,500

What's Different This Year

Private company sale closed/closing in 2026 (~$2.4M gain)
Income spike pushes into top ordinary + 23.8% LTCG/NIIT rates
Estimated payments still set to prior-year levels — large Q4 gap

Added

Schedule D — large LT capital gainForm 8949 — company stock disposition

Notable

Founder C-corp stock (2016) disposed — ~$2.4M gainAGI up 258% vs prior yearCharitable intent expressed for the windfall year

Tax anatomy

Income by Tax Bracket

How income fills the ordinary brackets, with capital gains stacked on top. Dashed lines mark each bracket ceiling — the gap above is your room.

10% top · $24k

12% top · $97k

22% top · $207k

24% top · $395k

32% top · $501k

Standard deduction$30,000

10% bracket$23,850

12% bracket$73,100

22% bracket$109,750

24% bracket$187,900

32% bracket$47,400

LTCG @ 20% + NIIT$2,400,000

Room before

$59,050

of income before crossing into the next bracket

Marginal Rate Curve

The true rate on the next dollar across added income — decomposed so you can see which tax drives each spike.

23.8%

on the next dollar at +$0

Next dollar is LTCG: 20% + 3.8% NIIT

+$0+$200k

Capital gainsNIIT 3.8%

MAGI Phase-Out Map

Where this client sits against each threshold — and what crossing it costs.

NIITNIIT threshold$2.7M over

MAGI $2.9M · threshold $250kcrossing: 3.8% on net investment income

bracketTop of 20% LTCG bracket$2.3M over

MAGI $2.9M · threshold $600kcrossing: LTCG taxed at 20% above this

IRMAAIRMAA top tier$2.2M over

MAGI $2.9M · threshold $750kcrossing: +$5,508/yr Part B+D per person

Elan

Grounded on Robert & Lisa Chen

I flagged 1 thing for Robert & Lisa Chen.

Elan brought this to you

Year-over-year briefing

2026 Return Summary (projected)

AGI: $2,910,000
Taxable income: $2,842,000
Total tax: $778,700
Effective / marginal: 27.4% · 37% / 23.8% LTCG+NIIT
Withholding + estimates: $180,000
Estimated balance due: $598,700

Estimated Payments & Safe Harbor

Paid

$45,000

Paid

$45,000

Paid

$46,000

Due

$64,530

Safe harbor (110% of 2025 tax ($182,300))Shortfall

Paid $136,000 of $200,530$64,530 due by Jan 15

3-Year Trend

Metric	2024	2025	2026proj	Change
AGI	$768,000	$812,000	$2,910,000	+279%
Total tax	$168,700	$182,300	$778,700	+362%
Effective rate	23.7%	24.3%	27.4%	+16%

Carryforward Ledger

Passive activity loss
From rental (Sch E), 2023 origin
$31,000
Charitable contribution
2025 excess over 30% AGI limit
$18,500

What's Different This Year

Private company sale closed/closing in 2026 (~$2.4M gain)
Income spike pushes into top ordinary + 23.8% LTCG/NIIT rates
Estimated payments still set to prior-year levels — large Q4 gap

Added

Schedule D — large LT capital gainForm 8949 — company stock disposition

Notable

Founder C-corp stock (2016) disposed — ~$2.4M gainAGI up 258% vs prior yearCharitable intent expressed for the windfall year

Tax anatomy

Income by Tax Bracket

How income fills the ordinary brackets, with capital gains stacked on top. Dashed lines mark each bracket ceiling — the gap above is your room.

10% top · $24k

12% top · $97k

22% top · $207k

24% top · $395k

32% top · $501k

Standard deduction$30,000

10% bracket$23,850

12% bracket$73,100

22% bracket$109,750

24% bracket$187,900

32% bracket$47,400

LTCG @ 20% + NIIT$2,400,000

Room before

$59,050

of income before crossing into the next bracket

Marginal Rate Curve

The true rate on the next dollar across added income — decomposed so you can see which tax drives each spike.

23.8%

on the next dollar at +$0

Next dollar is LTCG: 20% + 3.8% NIIT

+$0+$200k

Capital gainsNIIT 3.8%

MAGI Phase-Out Map

Where this client sits against each threshold — and what crossing it costs.

NIITNIIT threshold$2.7M over

MAGI $2.9M · threshold $250kcrossing: 3.8% on net investment income

bracketTop of 20% LTCG bracket$2.3M over

MAGI $2.9M · threshold $600kcrossing: LTCG taxed at 20% above this

IRMAAIRMAA top tier$2.2M over

MAGI $2.9M · threshold $750kcrossing: +$5,508/yr Part B+D per person