1. The property you are selling
Your tax basis in it
Adjusted basis = purchase price + improvements − depreciation. Depreciation is subtracted whether or not you claimed it.
2. The property you plan to buy
Loan fees and prepaid items generally do not count as exchange costs. Title, recording and intermediary fees usually do.
3. Optional: rates and identification list
The rates are yours to choose; your bracket, state and situation decide them. They are not looked up for you.
Enter the sale and replacement numbers, then click Calculate.
Result
What this does not cover
- Whether your property qualifies. Since 2018 only real property held for investment or business use qualifies. It cannot decide for you.
- Reverse, improvement and partial-interest exchanges, related-party rules, and multi-property exchanges with different bases are not modelled.
- Personal property and section 1245 recapture, installment sales, passive-loss carryovers and state conformity are ignored.
- Federal rules only. Some states withhold or claw back at sale. Check yours.
- Rates and rules change. Confirm the current rules and your own rates before relying on any figure.
Common questions
What is a 1031 exchange?
A Section 1031 like-kind exchange lets you defer federal capital gains tax and depreciation recapture when you sell real property held for investment or business use and reinvest in other real property. The tax is deferred, not forgiven: the gain carries into the replacement property's basis.
What are the 45-day and 180-day deadlines?
You must identify replacement property in writing within 45 days of closing on the property you sold, and close on it within 180 days (or by your tax return due date for that year, if earlier, unless you file an extension). Neither deadline is extended for weekends or because a closing slips.
What is boot in a 1031 exchange?
Boot is anything you receive that is not like-kind property: cash you take out, or mortgage debt you are relieved of that is not replaced by new debt or added cash. Boot is taxable, up to the amount of your gain.
How do I fully defer the tax?
Buy replacement property that costs at least the net sale price, reinvest all of the net equity through a qualified intermediary, and take on at least as much debt as you paid off (or add cash to make up the difference).
Is this tax advice?
No. This tool does arithmetic on the numbers you enter with published rules, and the rates are yours to set. It cannot tell whether your property qualifies. Use a qualified intermediary and a CPA before you sell.