Inputs
From Schedule E, line 18 (cumulative)
Agent commissions + closing costs (typically 6–8%)
Results
Tax Deferred via 1031
$72,592
More details
ℹ️ Consult a qualified tax advisor or 1031 intermediary before proceeding. This is an estimate; your actual tax liability depends on your complete tax picture.
How to Use
- 1Enter your original purchase price and any capital improvements you've made to the property.
- 2Input the total depreciation you've taken from tax filings (Schedule E).
- 3Enter the expected sale price and estimated selling costs (commissions + closing fees).
- 4Select your federal tax bracket and your state's capital gains rate.
- 5The calculator shows your total tax deferred and the minimum replacement property value required.
Frequently Asked Questions
What is a 1031 exchange?+
A 1031 exchange (Section 1031 of the US tax code) allows real estate investors to defer capital gains and depreciation recapture taxes when selling an investment property, provided the proceeds are reinvested in a "like-kind" replacement property within specific timeframes.
What are the 1031 exchange deadlines?+
You have 45 days after closing to identify replacement properties and 180 days to complete the purchase. A Qualified Intermediary (QI) must hold the sale proceeds — you cannot touch the funds.
Is tax deferred forever in a 1031?+
No — tax is deferred, not eliminated. The basis in the replacement property is reduced by the deferred gain. Taxes are due when you eventually sell without exchanging. However, heirs receive a step-up in basis at death, effectively eliminating the deferred tax.
Can I 1031 exchange into a primary residence?+
No — properties must be held for investment or business use. However, you can convert a 1031 replacement property to a primary residence after 2 years and may qualify for the primary residence exclusion.
What is "boot" in a 1031 exchange?+
Boot is any value received in the exchange that isn't like-kind property — such as cash or mortgage relief. Boot is taxable in the year of the exchange. To defer all taxes, the replacement property must be of equal or greater value.
This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.