Calculate the tax you defer by doing a 1031 exchange vs selling outright. Shows tax breakdown, 45/180-day deadlines, and replacement property cash flow.
📍 Property Address (optional)
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InputsYour Numbers
Relinquished Property (What You're Selling)
Sale Price?
$
Selling Costs?
$
Original Purchase Price (Basis)?
$
Accumulated Depreciation?
$
Your Taxable Income?
$
Filing Status
Replacement Property (What You're Buying)
Replacement Property Price?
$
Down Payment %?
%
Mortgage Rate %?
%
Monthly Rent (replacement)?
$
Monthly Expenses (replacement)?
$
As-Is AnalysisCurrent
Enter values to see results
Tax if You Sell
--
total federal est.
Tax if 1031
$0 deferred
all tax deferred
Net Gain
--
total taxable gain
Net if You Sell
--
after tax & costs
Tax Calculation (If You Sell Without 1031)
Sale Price--
Selling Costs--
Adjusted Basis--
Total Taxable Gain--
Depreciation Recapture (25%)--
Capital Gains Tax--
NIIT (3.8%, if applicable)--
Total Tax Bill--
1031 Exchange Rules
45-Day ID Window--
180-Day Close Window--
Minimum Replace Price--
Capital Available to Reinvest--
Pro FormaAfter Plan
Enter pro forma values
Tax Deferred
--
via 1031
Replacement Monthly CF
--
after new mortgage
CF Improvement
--
vs relinquished
New Asset Value
--
replacement price
1031 Exchange Summary
Sale Proceeds--
Tax Deferred--
Capital Available for Exchange--
Replacement Price--
New Loan Amount--
Replacement Property Cash Flow
Monthly Rent--
New Mortgage Payment--
Operating Expenses--
Monthly Cash Flow--
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1
Enter Your Sale Details
Input sale price, selling costs, original basis, and accumulated depreciation. The calculator shows exactly what you'd owe in tax if you sold without exchanging.
2
Enter Your Income & Filing Status
This determines your long-term capital gains rate (0%, 15%, or 20%). Most investors at moderate income pay 15% on the capital gains portion.
3
Enter Replacement Property
Must be equal or greater in price to defer all gain. The calculator shows the new mortgage payment and monthly cash flow on the replacement.
4
Check the Tax Deferral
The as-is column shows your full tax bill. The pro forma shows $0 tax deferred. That deferred amount stays invested and compounding in the replacement property.
5
Note the Deadlines
The calculator shows your actual 45-day identification and 180-day closing deadlines from today. These are strict IRS deadlines -- missing them kills the exchange.
6
Use a Qualified Intermediary
A 1031 exchange REQUIRES a Qualified Intermediary (QI) to hold the sale proceeds. You cannot touch the money between sale and purchase. Set up your QI BEFORE closing the sale.
A 1031 exchange (named after IRC Section 1031) allows you to defer capital gains and depreciation recapture taxes by reinvesting the proceeds into a 'like-kind' replacement property. There is no limit on how many times you can exchange -- done correctly, you can defer tax indefinitely.
The four key rules: (1) The replacement property must be equal or greater in value. (2) You must identify up to 3 replacement properties within 45 days of closing. (3) You must close on the replacement within 180 days. (4) All proceeds must go through a Qualified Intermediary -- you cannot touch the money.
The step-up in basis at death makes 1031 exchanges even more powerful: heirs receive a stepped-up basis to fair market value, potentially eliminating the deferred tax entirely. This is the 'swap until you drop' strategy used by sophisticated real estate investors.