1031 Exchange Calculator
Calculate the tax you can defer with a 1031 like-kind exchange.
Enter sale price, cost basis, and replacement property to see deferred tax.
1031 Exchange Tax Analysis
A 1031 Exchange allows you to defer capital gains taxes when selling an investment property by reinvesting in a “like-kind” property.
Capital Gain = Sale Price − Cost Basis − Selling Costs
Depreciation Recapture = Total Depreciation Taken
Tax Without Exchange = (Capital Gain × Capital Gains Rate) + (Depreciation Recapture × 25%)
Tax Deferred = Tax Without Exchange (if replacement property ≥ sale price)
Key rules:
- 45-day rule: Identify replacement property within 45 days
- 180-day rule: Close on replacement within 180 days
- Must use a Qualified Intermediary (cannot touch funds)
- Boot (cash received) is taxable
- Cannot exchange primary residence (investment/business only)
- If replacement property costs less, the difference (“boot”) is taxed