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Calculation Machine

1031 Exchange Calculator

Estimate deferred capital gains tax via a 1031 exchange.

Reviewed by the Calculation Machine team · How we check our maths

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.

The formula

Deferred tax = (capital gain x cap gains rate) + (depreciation recapture x 25%)

Worked example

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 $

Result

  • 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

How to use the 1031 Exchange Calculator

  1. 1Enter your sale price, cost basis and depreciation taken on the relinquished property.
  2. 2Enter your capital gains rate and the replacement property price.
  3. 3Full deferral requires reinvesting all proceeds into equal-or-greater value property within IRS timelines.

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