1031 Exchange Calculator
Calculate how much capital gains tax you can defer — and how much more wealth you build by reinvesting pre-tax dollars into your next investment property.
Property You're Selling
$
Agent fees, closing costs, etc.
$
Original cost + improvements
$
Total depreciation deducted
$
Tax Rates
%
%
Future Growth Projection
%
Total Tax Deferred via 1031
$74,600
stays invested and working for you instead of going to the government
Tax Liability Without 1031
Total Gain on Sale
Depreciation Recapture (25%)
$60,000 subject
Capital Gains Tax (20%)
$298,000 subject
Total Tax Owed$74,600
Growth Comparison (10yr @ 5%/yr)
With 1031
$908,923
$558,000 deployed
Without 1031
$787,408
$483,400 deployed
Additional wealth from 1031 exchange
+$121,516
Key 1031 Rules
45 daysIdentify replacement property after sale closes
180 daysComplete the purchase of replacement property
$558,000+Minimum reinvestment to defer all taxes
Like-kindReplacement property must be investment real estate
This calculator provides estimates for informational purposes only. Consult a qualified tax professional before executing a 1031 exchange.
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