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
Results
Tax Savings from 1031
$65,688.00
≈ 6 years of state college
How to Use This Calculator
- Enter the Sale Price and Original Purchase Price of the property you are selling.
- Input total Depreciation Taken over your ownership period and Selling Costs (commissions, fees).
- Enter your Existing Mortgage Balance and the Replacement Property Price and New Mortgage.
- Set Federal Capital Gains Rate (15% or 20%), Depreciation Recapture Rate (25%), and State Tax Rate.
- Review Tax Savings from 1031 — the total taxes deferred by completing the like-kind exchange.
- If Tax Savings is substantial, the 1031 exchange is likely worth the complexity and timeline requirements.
How the result changes with Relinquished Property Sale Price ($)
| Relinquished Property Sale Price ($) | Tax Savings from 1031 |
|---|---|
| 100,000,000 | $3,875,488.00 |
| 350,000,000 | $13,375,488.00 |
| 650,000,000 | $24,775,488.00 |
| 900,000,000 | $34,275,488.00 |
What each input means
- Relinquished Property Sale Price ($)
- Sale price of the property being sold.
- Original Purchase Price ($)
- What you originally paid for the property.
- Depreciation Taken ($)
- Total depreciation claimed over ownership.
- Selling Costs ($)
- Agent commissions, closing costs, etc.
- Existing Mortgage Balance ($)
- Remaining balance on current mortgage.
- Replacement Property Price ($)
- Purchase price of replacement property.
- New Mortgage Amount ($)
- Mortgage on the replacement property.
- Federal Cap Gains Rate (%)
- Federal long-term capital gains rate (15% or 20%).
- Depreciation Recapture Rate (%)
- Federal depreciation recapture rate (typically 25%).
- State Tax Rate (%)
- State income tax rate on capital gains.
What each result means
- Tax Savings from 1031
- Taxes deferred by completing the exchange.
- Tax Without Exchange
- Total tax owed if you sell without 1031.
- Total Realized Gain
- Net sale proceeds minus adjusted basis.
- Capital Gain Portion
- Gain above depreciation recapture.
- Depreciation Recapture
- Depreciation subject to recapture tax.
- Boot (Taxable Portion)
- Cash or debt relief not rolled into exchange.
- Tax on Boot
- Tax owed on boot received.
- Equity from Sale
- Net proceeds minus existing mortgage.
- Cash Needed at Closing
- Additional cash beyond exchange funds.
- New Property Basis
- Carryover basis in replacement property.
- ID Deadline (days)
- 45 days to identify replacement properties.
- Closing Deadline (days)
- 180 days to close on replacement property.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersRelinquished Property Sale Price ($) = 400000, Original Purchase Price ($) = 200000, Depreciation Taken ($) = 50000, Selling Costs ($) = 24000 = 10 input(s) provided
- Calculate Tax Savings from 1031Tax Savings from 1031 = totalTaxWithout1031 - taxOnBoot65688 = $65,688
- Calculate Tax Without ExchangeTax Without Exchange = federalCapGainsTax + deprecRecaptureTax + stateTax + niit65688 = $65,688
- Calculate Total Realized GainTotal Realized Gain = netSaleProceeds - adjustedBasis226000 = $226,000
Engine last updated . Checked against 1 independently-derived test — how we verify calculators.
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