Capital Gains Tax Deferred
$0
100% tax deferred (payable on future sale if not exchanged again)
Net Equity Released
$0
After selling costs
Minimum Reinvestment
$0
To fully defer taxes
Min Equity: $270k
Boot (Taxable Amount)
$0
Tax: $0
This calculator provides estimates only. Tax laws vary and you should consult a qualified tax advisor before making investment decisions.
State taxes may apply differently to depreciation recapture and capital gains.
Additional $45,000 cash required to complete exchange.
| Relinquished Property Analysis |
| Sale Price |
$500,000 |
| Original Purchase Price |
$300,000 |
| Capital Improvements |
$50,000 |
| Depreciation Taken |
$80,000 |
| Adjusted Basis |
$270,000 |
| Selling Costs |
$30,000 |
| Net Sales Proceeds |
$470,000 |
| Total Gain |
$200,000 |
| Depreciation Recapture |
$80,000 |
| Capital Gain |
$120,000 |
| Mortgage Balance |
$200,000 |
| Net Equity |
$270,000 |
| Replacement Property Analysis |
| Purchase Price |
$550,000 |
| New Mortgage |
$250,000 |
| Additional Cash Invested |
$0 |
| Closing Costs |
$15,000 |
| Total Purchase Cost |
$565,000 |
| Cash Required at Closing |
$315,000 |
| Net Equity Used |
$270,000 |
| Additional Cash Needed |
$45,000 |
| Debt Comparison |
$50,000 Higher |
| Price Comparison |
$50,000 Higher |
| New Tax Basis |
$352,000 |
Tax Savings Breakdown
| Tax Type |
Rate |
Taxable Amount |
Tax Without Exchange |
Tax With Exchange |
Savings |
| Depreciation Recapture |
25% |
$80,000 |
$20,000 |
$500 |
$19,500 |
| Capital Gains Tax |
15% |
$120,000 |
$18,000 |
$0 |
$18,000 |
| State Tax |
5% |
$200,000 |
$10,000 |
$100 |
$9,900 |
| Total Tax |
$48,000 |
$600 |
$47,400 |
Exchange Analysis
1031 Exchange Tips & Requirements
- 45-Day Identification Rule: You must identify potential replacement properties within 45 days of selling your relinquished property
- 180-Day Closing Rule: You must close on the replacement property within 180 days
- Boot (Taxable Gain): Cash received, mortgage relief, or non-like-kind property received is taxable
- Use a qualified intermediary - you cannot touch the exchange funds