Calculator

1031 Exchange Tax Estimator

An illustrative look at gain and tax exposure if you sold, and what an exchange would defer. Every rate below is an assumption you can change — none of them is guaranteed to apply to you.

This is not a tax calculation. Actual tax depends on your full return, filing status, income, holding structure, passive activity and suspended losses, state residency, and facts this page never asks about. Treat every figure here as a rough order of magnitude to discuss with your CPA.

Sale

Estimated sale price

Estimated selling costs

Approximately $90,000 including commissions, escrow, title and county charges.

Basis

Adjusted basis drives the gain figure more than sale price does. If you don't know these, your CPA or your original closing statements will.

Original purchase price

Capital improvements since purchase

Depreciation claimed or allowable

Depreciation reduces basis whether or not it was actually claimed.

Deferred gain from a prior exchange

Other basis adjustments

Rate assumptions

Assumed blended effective rate

A single placeholder rate. Useful for a quick sense of scale, nothing more.

If you exchanged

A rough structure check. Reinvestment requirements depend on debt and equity, not price alone.

Anticipated replacement property price

Cash you'd want to keep outside the exchange

Estimated adjusted basis

$275,000

Estimated net sale proceeds

$1,410,000

Estimated realized gain

$1,135,000

Illustrative tax if you sold outright

$340,500

Assumption-driven. Not a tax calculation.

If you exchanged instead

A properly structured exchange generally defers recognition of gain rather than eliminating it. Deferred amounts carry into the replacement property's basis.

Amount potentially available for reinvestment: $1,410,000
Value shortfall vs. net proceeds: $10,000

The replacement price you entered is lower than the net sale proceeds. A reduction in value or in debt replaced can create recognized gain. This structure needs professional review.

Compare a Replacement Property Discuss With Jacob

Authoritative sources

Important: These calculations are for general educational and planning purposes only. They aren't an appraisal, tax calculation, legal opinion, investment recommendation or guarantee of results. Tax basis, depreciation, exchange eligibility and tax consequences can vary substantially based on individual facts. Review your specific situation with your CPA, attorney, qualified intermediary and other appropriate professionals before acting.

Take this to your CPA before you take it anywhere else.

Jacob can coordinate the real estate side once your tax advisor has looked at the structure. That order matters.

Request a Property Strategy Review Read the Exchange Guide