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1031 Exchange Calculator

A 1031 Exchange allows you to defer paying capital gains taxes when you sell an investment property and reinvest the proceeds into a 'like-kind' property.

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How to use this calculator

  1. Enter the original purchase price and the new sale price.
  2. Add your selling costs and any depreciation you've claimed over the years.
  3. Select your federal tax bracket and state to estimate your tax rates.
  4. Enter the value of the replacement property you plan to buy.

What your results mean

To defer ALL taxes, you must buy a replacement property of equal or greater value than your net sales price, and reinvest all your cash equity. The calculator shows your potential tax liability and the minimums required for a full exchange.

5 crucial tips for a 1031 exchange

  • You must use a Qualified Intermediary (QI). If you touch the cash from the sale, the exchange is void.
  • The 45-day rule is strict: you have exactly 45 days from closing to identify potential replacement properties.
  • The 180-day rule is strict: you must close on the replacement property within 180 days of selling the old one.
  • 'Like-kind' is broad. You can exchange a single-family rental for an apartment building, or raw land for a commercial strip center.
  • You cannot do a 1031 exchange on your primary residence (use the Section 121 exclusion for that).

Frequently asked questions