1031 Exchange Tax Deferred Calculator
Calculate deferred capital gains taxes and depreciation recapture taxes when selling investment property and rolling proceeds into like-kind real estate.
What this calculator does
The 1031 Exchange Tax Deferred Calculator estimates your result instantly from the values you enter, using standard real estate formulas. Calculate deferred capital gains taxes and depreciation recapture taxes when selling investment property and rolling proceeds into like-kind real estate. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About 1031 Exchange Tax Deferred Calculator
The 1031 Exchange Calculator calculates the total federal capital gains tax (15-20%), state tax, and Section 1250 depreciation recapture tax (25%) legally deferred by executing an IRS Section 1031 Like-Kind Exchange.
Formula & Mathematical Calculation
Total Gain = Sale Price - Adjusted Cost Basis (Original Cost - Cumulative Depreciation)
Total Tax Deferred = ( Depreciation Recapture × 25% ) + ( Capital Gain × Federal Rate ) + State Tax + NIIT (3.8%)
Calculation Example
$600,000 Sale ($300k Original Cost Basis, $80k Depreciation Claimed): Total Gain = $380,000. Total Deferred Tax = $98,400 (100% of which is reinvested into the replacement property!).
Key Benefits
- Calculates deferred federal capital gains tax and 25% depreciation recapture tax
- Models 1031 replacement property acquisition requirements (equal or greater value)
- Tracks strict IRS timeline milestones (45-day identification, 180-day closing)
- Preserves 100% of real estate equity for compounding wealth
- Essential commercial and residential investor tool
How to Use this Calculator
-
Enter Sale Price & Original Purchase Cost
Input relinquishing property sales price and original cost basis. -
Enter Total Cumulative Depreciation Claimed
Input total depreciation deductions taken over holding period. -
Calculate Deferred Tax
Click Calculate to view total deferred tax and reinvestment capital.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- 1031 Exchange Tax Deferred Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
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