1031 Exchange Calculator
Estimate deferred capital gains tax via a 1031 exchange.
Enter your values
ⓘ Live results
Results
- Total gain
- $200,000.00
- Depreciation recapture tax (25%)
- $15,000.00
- Capital gains tax
- $28,000.00
- Total tax deferred
- $43,000.00
- Fully qualifies (replacement ≥ sale price)
- Yes
Quick answer
A fully-qualifying 1031 exchange defers all capital gains and depreciation recapture tax, provided the replacement property has equal or greater value and all proceeds are reinvested.
Deferred tax = (capital gain x cap gains rate) + (depreciation recapture x 25%)
How to use the 1031 Exchange Calculator
- 1Enter your sale price, cost basis and depreciation taken on the relinquished property.
- 2Enter your capital gains rate and the replacement property price.
- 3Full deferral requires reinvesting all proceeds into equal-or-greater value property within IRS timelines.
Worked example
Using the values the calculator loads with:
Inputs
- Sale price of relinquished property500000 $
- Adjusted cost basis300000 $
- Depreciation taken60000 $
- Capital gains tax rate20 %
- Replacement property price550000 $
Results
- Total gain$200,000.00
- Depreciation recapture tax (25%)$15,000.00
- Capital gains tax$28,000.00
- Total tax deferred$43,000.00
- Fully qualifies (replacement ≥ sale price)Yes
Frequently asked questions
What are the 1031 deadlines?
You must identify replacement property within 45 days and close within 180 days of the sale.
Can I ever cash out tax-free?
The tax is deferred, not eliminated — it's typically triggered eventually unless you hold until death (step-up in basis).
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.