TRUST CENTER

How Unlevered works: methodology, data privacy, and accuracy.

We built Unlevered for people who take their finances seriously. That means you deserve to know exactly how we calculate your estimates, what happens to your data, and where our limitations are.

How calculations work

Every savings estimate in your report follows the same core methodology: identify the taxable amount a strategy affects, apply your applicable tax rate, and account for any statutory limits, phase-outs, or special rules. Here is how each component is determined.

Tax rate determination

  • Federal marginal rate: Calculated from 2026 tax brackets based on your filing status and estimated AGI. We use the bracket schedule from IRC §1, as modified by the One Big Beautiful Bill Act (OBBBA, Public Law 119-21).
  • State marginal rate: Sourced from our database of top marginal rates for each state, calibrated for earners above $300K. We use the rate applicable to your reported state of residence.
  • Combined effective rate: Federal + state, adjusted for the SALT deduction interaction. The formula accounts for the benefit of deducting state taxes on your federal return, subject to the $40,400 SALT cap (MFJ) with phase-out between $505K and $605K AGI.
  • Long-term capital gains rate: Calculated using filing-status-specific LTCG brackets (0% / 15% / 20%) plus the 3.8% net investment income tax (NIIT) under IRC §1411 for AGI above $250K MFJ.

Strategy eligibility screening

Each of our 50+ strategies has a set of qualification criteria derived directly from the Internal Revenue Code. For example:

  • 401(k) gap analysis: IRC §402(g) sets the 2026 elective deferral limit at $23,500 ($31,000 if age 50+, $34,750 if age 60-63 under OBBBA §111). We compare your reported contributions to the applicable limit.
  • Backdoor Roth IRA: IRC §408A governs Roth IRA contributions. We check if your income exceeds the direct contribution phase-out ($240K MFJ) and whether you indicated existing traditional IRA balances (pro-rata rule under IRC §408(d)(2)).
  • Cost segregation: IRC §168 and §168(k) govern depreciation and bonus depreciation. We screen for property ownership, estimated cost basis above $500K, and rental activity status.
  • Real Estate Professional status: IRC §469(c)(7) requires 750+ hours of material participation in real estate. We screen based on your reported employment type and rental property ownership.
  • QSBS exclusion: IRC §1202 provides tiered exclusion for qualified small business stock. We check holding period, company qualification indicators, and apply the OBBBA-updated tiers (50% at 3yr, 75% at 4yr, 100% at 5yr, $15M cap).

Savings calculation methodology

We categorize savings into four types, each calculated differently:

  • Direct tax savings: Strategies that reduce your tax bill in the current year. Calculation: deductible amount x your combined marginal rate. Example: a $23,500 401(k) contribution gap at a 43% combined rate = $10,105 in direct savings.
  • Tax-free growth (deferral): Strategies where the benefit compounds over time. We estimate 7% annual growth on contributed amounts and calculate the tax-free growth differential over a 20-year horizon. Example: $7,000 in a Roth IRA growing at 7% for 20 years = $27,096 total value, with $20,096 in tax-free growth.
  • Penalty avoidance: Money saved by avoiding IRS underpayment penalties under IRC §6654. We estimate the penalty based on the gap between required estimated payments and actual withholding, using the current IRS interest rate.
  • Action items: Flags for situations that need attention but aren't traditional 'savings.' For example, an RSU withholding gap where your employer is withholding at 22% on supplemental income that will be taxed at 37%+. We quantify the exposure but categorize it as an action item, not a savings estimate.

Confidence levels

High

Deterministic calculation from statutory limits. The input is a number, the limit is a number, and the tax rate is a number. Example: 401(k) gap x marginal rate. These estimates are accurate within 5% for most filers.

Medium

Estimate with reasonable assumptions. We may assume a typical employer match percentage, a standard portfolio loss ratio for tax-loss harvesting, or average cost segregation percentages by property type. These estimates are directionally accurate but your CPA will refine the exact number.

Verify

Requires CPA confirmation of specific facts we cannot determine from 7 questions. Examples: whether you meet the 750-hour material participation threshold for REP status, whether your traditional IRA has a basis for pro-rata calculation, or whether your company's stock qualifies under IRC §1202. The estimate assumes qualification. Your CPA confirms it.

Tax law sources and OBBBA compliance

All calculations are based on 2026 tax law, incorporating the One Big Beautiful Bill Act (OBBBA, Public Law 119-21), signed into law on July 4, 2025. This is the most significant tax legislation since the 2017 Tax Cuts and Jobs Act. Key provisions reflected in our engine:

  • 100% bonus depreciation restored permanently for qualified property acquired after January 19, 2025 (IRC §168(k), as amended by OBBBA §13201). This reverses the phase-down schedule from the original TCJA.
  • SALT cap raised to $40,400 for married filing jointly, with a new phase-out between $505,000 and $605,000 AGI (OBBBA §12102). Single filers: $20,200 with phase-out at $252,500-$302,500.
  • Qualified Business Income (QBI) deduction under IRC §199A made permanent, with a new $400 minimum floor for qualifying taxpayers (OBBBA §12113).
  • Dependent Care FSA limit raised to $7,500 annually (OBBBA §12201), up from $5,000.
  • Charitable giving: New 0.5% AGI floor for itemized charitable deductions effective January 1, 2026 (OBBBA §12301). Donations below this floor are not deductible.
  • QSBS exclusion (IRC §1202) updated to a tiered system: 50% exclusion at 3 years holding, 75% at 4 years, 100% at 5 years, with a $15M cap per issuer (OBBBA §13101).
  • Trump Accounts (IRC §529C): New tax-advantaged savings accounts, $5,000/year per child, for births between 2025 and 2028 (OBBBA §12401).
  • Enhanced catch-up contributions for ages 60-63: $34,750 total 401(k) limit (OBBBA §111), effective 2025 plan years.
  • Standard deduction increased to $30,000 MFJ / $15,000 single for 2026 (OBBBA §12101).

Last engine update: March 15, 2026. We update the calculation engine when material legislative or regulatory changes occur.

Data privacy

We designed Unlevered with a privacy-first architecture. Here is exactly what happens to your data at every step.

What we collect

  • Your answers to 7 intake questions: income range, filing status, state, equity compensation type, real estate ownership, retirement contribution status, and age range
  • An email address (for report delivery only)
  • A randomly generated session ID for report retrieval

What we do NOT collect

  • Social Security numbers
  • Bank account or brokerage account numbers
  • Tax return documents (W-2, 1099, K-1)
  • Employer name or specific stock ticker
  • Exact dollar amounts of income (we use ranges)
  • Any information that could be used to file a tax return or access financial accounts

How calculations are processed

All tax calculations run client-side in your browser. Your financial inputs are processed locally using our JavaScript calculation engine. The inputs are not transmitted to our servers for processing.

We store your anonymized session data (inputs + results) encrypted at rest so you can retrieve your report later. This data is associated with your session ID and email, not with your name, SSN, or any identifying financial information.

Data retention and deletion

Session data is retained for 12 months from creation, then automatically deleted. You can request immediate deletion at any time by contacting us. We do not sell, share, or monetize your data. We do not use your inputs to train machine learning models. See our full Privacy Policy for complete details.

CPA review process

Unlevered is not a CPA firm. We produce screening reports, not tax returns and not tax advice. Here is how the CPA review process works:

Strategy validation by licensed professionals

Every strategy in our database has been reviewed by licensed CPAs with experience serving high-net-worth individuals. The IRC citations, qualification criteria, and calculation methodology for each strategy have been verified against current tax law.

Engine testing against known scenarios

We test our calculation engine against a library of known tax scenarios with predetermined correct answers. This includes edge cases like AMT interaction, passive activity loss limitations, and state non-conformity situations.

Your report is a starting point, not a conclusion

The report is designed to be taken to your CPA for confirmation. Every estimate includes a confidence rating. 'High' confidence estimates are based on statutory math. 'Verify' estimates explicitly state that CPA confirmation is required. We never present an uncertain estimate as a guaranteed outcome.

Ongoing law change monitoring

Our team monitors IRS guidance, revenue procedures, and legislative changes. When a change affects our calculations, we update the engine and note the change date. The report header shows which tax law version the calculations are based on.

Known limitations

We believe in transparency about what Unlevered can and cannot do:

  • We use income ranges, not exact amounts. Your CPA's calculation with your exact W-2/1099 data will be more precise.
  • We cannot model the interaction of all strategies simultaneously. Some strategies reduce AGI, which changes eligibility for others. Your CPA handles this sequencing.
  • State tax calculations use top marginal rates. If your state has a graduated bracket system, your effective state rate may differ.
  • We do not model AMT (Alternative Minimum Tax) in detail. Strategies like ISO exercise timing and cost segregation can trigger AMT, which your CPA will evaluate.
  • Passive activity loss rules (IRC §469) are complex. We screen for eligibility but cannot determine your exact passive activity position across all activities without a full return.
  • Business entity structure optimization (S-Corp vs. LLC vs. C-Corp) depends on facts and circumstances we cannot fully capture in 7 questions.
  • Estimated savings are upper-bound figures. Your actual savings will typically be 60-85% of the estimated range, depending on your specific circumstances.

Legal disclaimer

Unlevered provides educational tax strategy screening based on self-reported inputs and publicly available tax law. All savings figures are upper-bound estimates intended to inform your conversation with a licensed tax professional. Your CPA or Enrolled Agent will adjust exact amounts based on your complete tax return and individual circumstances.

Stayguard LLC, operating as Unlevered, is not a Certified Public Accounting firm, Enrolled Agent practice, or law firm. We do not provide tax advice, legal advice, or investment advice. We do not prepare tax returns. We do not represent clients before the IRS.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

For our full legal terms, see our Terms of Service and Privacy Policy.

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