1031 Exchange Calculator

How to use this calculator

Enter the sale price, selling costs, and your adjusted cost basis, then your accumulated depreciation and mortgage payoff. Set your federal capital gains and state tax rates. The calculator estimates the total tax you would defer by exchanging, and the replacement value, equity, and debt you must reinvest to defer the full gain.

What the metrics mean

• Total taxable gain — net sale price minus your adjusted cost basis.
• Depreciation recapture — the portion of gain from prior depreciation, taxed up to 25%.
• Capital gains tax — the long-term rate applied to the gain above recapture.
• Net investment income tax — an additional 3.8% that applies above IRS income thresholds.
• Equity to reinvest — net sale proceeds after paying off the existing mortgage.

Frequently asked questions

What is a 1031 exchange?

A 1031 (like-kind) exchange lets a real estate investor defer capital gains and depreciation recapture tax by reinvesting the proceeds from a sold investment property into another qualifying property, using a qualified intermediary.

How much tax does a 1031 exchange defer?

It defers federal capital gains, depreciation recapture (taxed up to 25%), the 3.8% net investment income tax where it applies, and state income tax on the gain. This calculator totals all four so you can see the full deferral.

What are the 45-day and 180-day rules?

After selling, you have 45 days to formally identify replacement property and 180 days to close on it. Both clocks start at the sale closing and run concurrently — miss either and the exchange fails.

How much do I have to reinvest to defer all the gain?

To defer the entire gain you must buy a replacement of equal or greater value, reinvest all of your net equity, and replace the debt you paid off (or add equivalent cash). The calculator shows each of these targets.

Managing gains across a growing portfolio? dre1mery.com tracks basis, depreciation, and equity on every property you own.