1031 Exchange Calculator

Use our free 1031 Exchange Calculator to estimate your tax-deferred gains and reinvestment requirements. This calculator helps real estate investors analyze like-kind exchanges, determine boot exposure, calculate capital gains tax savings, and ensure compliance with IRS Section 1031 replacement property rules.

1031 Exchange Information

Relinquished Property (Property You're Selling)

Sale Price ($)

Original Purchase Price ($)

Existing Mortgage Balance ($)

Current loan balance at time of sale

Selling Costs & Commissions ($)

Agent commissions, closing costs, transfer taxes

Capital Improvements ($)

Total cost of improvements made during ownership

Depreciation Taken ($)

Total depreciation claimed while owned

Tax Rates (If Not Exchanged)

Capital Gains Tax Rate (%)

Federal: 0%, 15%, or 20%

Depreciation Recapture Rate (%)

Typically 25%

State Tax Rate (%)

State capital gains tax rate

Include Net Investment Income Tax (NIIT) - 3.8%

Applies to high-income earners (AGI > $200K/$250K)

Replacement Property (Property You're Buying)

1031 Exchange Rules: To fully defer taxes, you must:

Purchase price ≥ Sale price of relinquished property
Reinvest all net equity
Obtain equal or greater debt

Planned Purchase Price ($)

Leave blank to calculate minimum requirement

New Mortgage Amount ($)

Additional Cash Invested ($)

Extra cash added to complete the purchase

Replacement Closing Costs ($)

Advanced Options

Calculate Partial Exchange (Boot Received)

Show Cash Flow Analysis

1031 Exchange Timeline Requirements

45-Day Rule: November 15, 2024

Identify potential replacement properties

180-Day Rule: March 30, 2025

Close on replacement property

1031 Exchange Analysis Summary

Capital Gains Tax Deferred

$0

0% tax savings

Net Equity Released

$0

After selling costs

Minimum Reinvestment

$0

To fully defer taxes

Boot (Taxable Amount)

$0

Tax: $0

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	$470,000

Tax Savings Breakdown

Tax Type	Rate	Taxable Amount	Tax Without Exchange	Tax With Exchange	Savings
Depreciation Recapture	25%	$80,000	$20,000	$0	$20,000
Capital Gains Tax	15%	$120,000	$18,000	$0	$18,000
Net Investment Income Tax	0%	$120,000	$0	$0	$0
State Tax	5%	$200,000	$10,000	$0	$10,000
Total Tax Savings			$48,000	$0	$48,000

1031 Exchange Requirements Checklist

Equal or Greater Value: Replacement price ($550,000) ≥ Sale price ($500,000)
All Equity Reinvested: $270,000 reinvested (100%)

Debt Requirement: New debt ($250,000) ≥ Old debt ($200,000)
Boot Received: $0 (No taxable boot)

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
Three-Property Rule: You can identify up to 3 properties regardless of value
200% Rule: You can identify more than 3 properties if their total value doesn't exceed 200% of the sale price
95% Rule: If identifying more than 3 properties, you must close on 95% of the total value identified
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

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Scenario	Net Cash After Tax	Investable Capital	Annual Cash Flow (6%)	5-Year Return
Without 1031 Exchange	$222,000	$222,000	$13,320	$66,600
With 1031 Exchange	$270,000	$270,000	$16,200	$81,000
Additional 5-Year Return with Exchange				$14,400

Scenario	Cash Available	Tax Paid	Net Investable	Future Depreciation Basis
Without 1031 Exchange	$270,000	$48,000	$222,000	N/A
With 1031 Exchange	$270,000	$0	$270,000	$470,000

1031 Exchange Calculator

1031 Exchange Information

Relinquished Property (Property You're Selling)

Tax Rates (If Not Exchanged)

Replacement Property (Property You're Buying)

Advanced Options

1031 Exchange Timeline Requirements

1031 Exchange Analysis Summary

Capital Gains Tax Deferred

$0

Net Equity Released

$0

Minimum Reinvestment

$0

Boot (Taxable Amount)

$0

Tax Savings Breakdown

Cash Flow Comparison

1031 Exchange Requirements Checklist

Exchange Analysis

1031 Exchange Tips & Requirements

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1031 Exchange Calculator

1031 Exchange Information

Relinquished Property (Property You're Selling)

Tax Rates (If Not Exchanged)

Replacement Property (Property You're Buying)

Advanced Options

1031 Exchange Timeline Requirements

1031 Exchange Analysis Summary

Capital Gains Tax Deferred

$0

Net Equity Released

$0

Minimum Reinvestment

$0

Boot (Taxable Amount)

$0

Tax Savings Breakdown

Cash Flow Comparison

1031 Exchange Requirements Checklist

Exchange Analysis

1031 Exchange Tips & Requirements

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