Calculator · Stage 5

1031 Exchange Deferral Calculator

Calculate the exact capital gains, depreciation recapture, and state taxes you defer by executing a 1031 exchange compared to a taxable sale.

Educational tool only. 1031 exchanges are complex legal mechanisms that require a Qualified Intermediary (QI). Consult a tax professional before selling.

Property Financials

Estimated Sale Price ($)

Selling Costs (Commissions, closing) ($)

Original Purchase Price ($)

Capital Improvements ($)

Accumulated Depreciation Taken ($)

Remaining Mortgage Balance ($)

Tax Rates

Federal Capital Gains Tax (%)

State Capital Gains Tax (%)

Subject to 3.8% Net Investment Income Tax (NIIT)

Tax Liability Deferred (Saved)

—

This is the additional equity you keep working for you.

The Math (Taxable Sale Scenario)

1. Adjusted Cost Basis

Original Purchase Price—

+ Capital Improvements—

- Accumulated Depreciation—

Adjusted Basis—

2. Realized Gain

Sale Price—

- Selling Costs—

- Adjusted Basis—

Total Gain Recognized—

3. Estimated Tax Bill

Depreciation Recapture (at 25%)—

Federal Capital Gains—

State Capital Gains—

Net Investment Income Tax (3.8%)—

Total Tax Due on Sale—

4. Equity Available to Reinvest

Taxable Sale (After Mortgage, Costs, & Tax)—

1031 Exchange (After Mortgage & Costs)—

1031 Exchange Rules to Remember:

Like-Kind: Must exchange for real estate held for business or investment.
45-Day Rule: Must identify replacement property within 45 days of closing.
180-Day Rule: Must close on replacement property within 180 days.
Equal or Greater Value: To defer 100% of tax, the replacement property must cost the same or more than the relinquished property, and you must reinvest all equity.