1031 Exchange Calculator
Estimate the tax you'd defer (recapture, capital gains, and NIIT) and what that keeps working for you.
Your numbers
The sale
Your basis
Tax profile
Tax deferred by exchanging
$43,600
What a 1031 exchange keeps invested instead of paid in tax this year.
- Total gain
- $200,000
- Depreciation recapture (25%)
- $15,000
- Federal capital gains
- $21,000
- NIIT (3.8%)
- $7,600
- Net proceeds if you sell
- $421,400
- Extra buying power
- $174,400
Deferred tax ÷ 25% down
Sell outright vs. 1031 exchange
| Taxable sale | 1031 exchange | |
|---|---|---|
| Amount realized | $465,000 | $465,000 |
| Tax due now | $43,600 | $0 |
| Reinvestable proceeds | $421,400 | $465,000 |
| Purchasing power at 25% down | $1,685,600 | $1,860,000 |
Deferral, not forgiveness. The deferred gain carries into the replacement property's basis. Exchanges must follow the 45-day identification and 180-day closing rules with a qualified intermediary.
Estimates for planning only. Not financial, tax, or legal advice. Verify every number with your own due diligence and advisors.
How this calculator works
A 1031 exchange lets you sell an investment property and roll the full proceeds into a replacement property, deferring capital-gains tax, depreciation recapture, and net investment income tax that a normal sale would trigger. The deferred tax keeps compounding in real estate instead of leaving your portfolio.
The calculator estimates what you'd owe on a taxable sale (recapture at 25%, federal capital gains at your bracket, plus optional state tax and NIIT) and shows the buying power an exchange preserves.
Related calculators
1031 Exchange questions, answered.
Two hard clocks start the day you close the sale: 45 calendar days to identify replacement property in writing, and 180 days to close on it. Funds must be held by a qualified intermediary throughout. Touch the proceeds and the exchange fails.
Every dollar of depreciation you claimed while owning the property reduces its tax basis, and the IRS taxes that portion of your gain at up to 25% when you sell, separate from and on top of capital-gains tax. Exchanges defer it along with the rest.
The gain carries into the replacement property's basis, so it's deferred, not erased. But you can exchange again and again, and under current law, heirs receive a stepped-up basis at death, which can eliminate the deferred gain entirely. Talk to a tax professional about your situation.
Membership is vetted · No cost to join
Start building your investment portfolio today.
See pre-vetted, off-market DFW deals before the market does, with a licensed advisor on your side from underwriting to closing.