🏠 Relinquished Property (Sold)

Original Purchase Price

Capital Improvements

Depreciation Taken

Prior Deferred Gain (if any)

Current Selling Price

Selling Costs (commissions, fees)

Mortgage / Loan Payoff

🏢 Replacement Property (Bought)

Purchase Price

Acquisition Costs (closing, fees)

New Mortgage / Loan Amount

💰 Tax & Income Details

Federal Capital Gains Rate (Long-term)

Depreciation Recapture Rate

Net Investment Income Tax (NIIT)

State Tax Rate (on gain)

Does State Recognize 1031?

📊 Advanced Options

Include NIIT in Federal Tax? (if applicable)

Tax Filing Status (for NIIT)

📋 1031 Exchange Results & Worksheet

Realized Gain (Total Profit)

Recognized (Taxable) Gain

Deferred Gain (Tax Saved)

Est. Tax WITHOUT 1031

Est. Tax WITH 1031

Total Tax Savings

📑 Detailed Tax Breakdown

Component	Without 1031 Exchange	With 1031 Exchange

📄 1031 Exchange Calculation Worksheet

⚠️ This calculator provides estimates for educational purposes only. 1031 exchange rules are complex. Consult with a qualified tax professional or intermediary before making any investment decisions. State tax treatment varies; some states like Pennsylvania and California may not fully defer state-level gain.

Advanced 1031 exchange worksheet — estimate capital gains tax deferral

What is a 1031 Exchange?

A 1031 exchange (or like-kind exchange) allows real estate investors to defer paying capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar "like-kind" property. This powerful tax strategy can help preserve equity and accelerate wealth building.

How to Use This Calculator

Enter details for the property you are selling (Relinquished Property) and the property you intend to buy (Replacement Property).
Adjust tax rates based on your income level and state. Some states do not conform to 1031 rules.
The calculator will show your realized gain, recognized taxable gain, and the amount of tax successfully deferred.
The "Worksheet" section mirrors the step-by-step calculations used by professional intermediaries.

Key Rules to Remember

Like-Kind: Both properties must be held for investment or business use.
Timing: You have 45 days to identify a replacement property and 180 days to close.
Boot: Any cash or debt relief not reinvested is taxable "boot."
Equal or Up in Value: To fully defer tax, the replacement property must be equal or greater in value and equity.

1031 Exchange Calculator