1031 Exchange Calculator

Calculate tax deferral from a 1031 like-kind exchange. Compare taxes owed with and without the exchange, boot exposure, and cash needed for the replacement property.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Relinquished Property Sale Price ($)

Original Purchase Price ($)

Depreciation Taken ($)

Selling Costs ($)

Existing Mortgage Balance ($)

Replacement Property Price ($)

New Mortgage Amount ($)

Federal Cap Gains Rate (%)

Depreciation Recapture Rate (%)

State Tax Rate (%)

Tab to move between fields

Results

Tax Savings from 1031

$65,688.00

Tax Without Exchange$65,688.00

Total Realized Gain$226,000.00

Capital Gain Portion$176,000.00

Depreciation Recapture$50,000.00

Boot (Taxable Portion)$0.00

Tax on Boot$0.00

Equity from Sale$226,000.00

Cash Needed at Closing$0.00

New Property Basis$250,000.00

ID Deadline (days)45

Closing Deadline (days)180

How to Use This Calculator

Enter the Sale Price and Original Purchase Price of the property you are selling.
Input total Depreciation Taken over your ownership period and Selling Costs (commissions, fees).
Enter your Existing Mortgage Balance and the Replacement Property Price and New Mortgage.
Set Federal Capital Gains Rate (15% or 20%), Depreciation Recapture Rate (25%), and State Tax Rate.
Review Tax Savings from 1031 — the total taxes deferred by completing the like-kind exchange.
If Tax Savings is substantial, the 1031 exchange is likely worth the complexity and timeline requirements.

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