1031 Exchange Calculator
1031 Like-Kind Exchange Analysis
Calculate deferred taxes, boot exposure, and net proceeds from a tax-deferred like-kind exchange.
Relinquished Property(property being sold)
Depreciation Taken ($)
Auto-estimated: $14,545/yr × 10 yrs = $145,455
Tax Rates
Replacement Property
1031 Exchange Rules▾
⏱
45-Day Identification Window
You must identify replacement property within 45 days of closing the relinquished sale.
📅
180-Day Closing Deadline
You must close on the replacement property within 180 days of closing the relinquished sale.
🏛
Like-Kind Requirement
Both properties must be real property held for investment or business use — not personal use.
🏦
Qualified Intermediary Required
Exchange proceeds must be held by a QI — you cannot receive the funds yourself.
⚖️
Equal-or-Greater Value Rule
To defer all taxes, the replacement must equal or exceed the net selling price of the relinquished property.
For illustrative purposes only. Tax treatment varies by situation. Consult a qualified tax professional before making decisions.
Verdict
Exchange Recommended
1031 exchange defers $97,764 in taxes — maximize your reinvestment
Tax if Sold
$97,764
Tax Deferred
$97,764
Tax Deferral Analysis
Original Purchase Price$500,000
+ Capital Improvements+$30,000
− Depreciation Taken($145,455)
Adjusted Cost Basis$384,545
Gross Selling Price$900,000
− Selling Costs (7%)($63,000)
Net Selling Price$837,000
Total Realized Gain$452,455
Depreciation Recapture Amount$145,455
Capital Gain (above recapture)$307,000
Depreciation Recapture Tax (25%)$36,364
Federal Cap Gains Tax (20%)$61,400
State Cap Gains Tax (0%)$0
Total Tax if Sold
$97,764
Blended rate: 21.6%
Tax Deferred (1031)
$97,764
Stays in replacement property
Side-by-Side Comparison
| Sell Outright | 1031 Exchange | |
|---|---|---|
| Gross Proceeds | $837,000 | $837,000 |
| Tax Owed | $97,764 | $0 |
| Net to Reinvest | $739,236 | $837,000 |
| Extra Buying Power | — | +$97,764 |
Replacement Property Analysis
Replacement Price$1,000,000
Down Payment$250,000
New Loan Amount$750,000
Monthly Payment$5,116/mo
Equity Carried Forward$837,000
Annual Depreciation (new basis)$29,091/yr
$1,000,000 × 80% ÷ 27.5 years