1031 Exchange Calculator

Estimate the federal tax you could defer by reinvesting the proceeds of an investment property sale into a like-kind property through a 1031 exchange. Enter your basis, sale figures, and tax rates below.

Property & Tax Details

Original Purchase Price ($)

Capital Improvements ($) — optional

Accumulated Depreciation ($) — optional

Sale Price ($)

Selling Costs ($) — commissions, fees. Optional.

Federal Capital Gains Rate (%) — 0, 15, or 20

Depreciation Recapture Rate (%) — usually 25

State Income Tax Rate (%) — optional

Your Results

Enter your figures and click Calculate to estimate the tax a 1031 exchange could defer.

How a 1031 Exchange Works

A 1031 exchange (named for Section 1031 of the Internal Revenue Code) lets you defer federal capital gains tax and depreciation recapture when you sell investment or business real estate and reinvest the proceeds into a like-kind property.

This calculator estimates the tax you would otherwise owe on a taxable sale, which is the amount a fully qualifying exchange can defer:

Adjusted Basis = Purchase Price + Improvements − Accumulated Depreciation
Total Gain = (Sale Price − Selling Costs) − Adjusted Basis
Recapture Tax = depreciation portion of the gain, taxed at the recapture rate
Capital Gains Tax = remaining gain, taxed at the federal rate

Key rules to defer the full amount: identify replacement property within 45 days, close within 180 days, use a Qualified Intermediary, and reinvest equal or greater value and equity. Receiving cash or reducing debt ("boot") can make part of the gain taxable.

Disclaimer: This is a simplified estimate, not tax or legal advice. It does not include the Net Investment Income Tax or every state nuance. Consult a CPA and a Qualified Intermediary before acting.