1031 Exchange Calculator
Estimate the capital gains and depreciation recapture tax you can defer by exchanging into a like-kind property.
On track to defer the full gain. The replacement property is equal or greater value and no boot is taken.
Tax deferral summary
Replacement property basis
Purchase price
$550,000
Carryover basis
$315,000
Your new depreciation schedule is based on this carryover basis, not the full purchase price.
Critical deadlines
July 21, 2026
Close on the property you are selling.
September 4, 2026
Identify up to 3 replacement properties (or use the 200% rule).
January 17, 2027
Close on the replacement property.
1031 exchange requirements
- Both properties must be held for investment or business use
- Properties must be like-kind (US real estate for US real estate)
- A Qualified Intermediary must hold the proceeds, you cannot touch them
- Identify the replacement property within 45 days
- Close on the replacement property within 180 days
- Buy equal or greater value and reinvest all equity to defer everything
Informational and educational only, not tax advice, and no accountant-client relationship is created. Estimates use simplified assumptions and do not reflect your specific situation. Verify current tax law and consult your CPA before filing.
Ready to line up a Qualified Intermediary?
A 1031 exchange requires a QI to hold your proceeds. Compare national QIs and see your state’s tax context.
Qualified Intermediary directoryFrequently asked questions
What is a 1031 exchange?
A 1031 exchange lets you sell an investment property and reinvest the proceeds into a like-kind property while deferring the capital gains and depreciation recapture tax you would otherwise owe. The tax is deferred, not erased, until you eventually sell without another exchange.
How much tax can a 1031 exchange defer?
It depends on your gain. The deferral covers federal long-term capital gains (0, 15, or 20 percent), depreciation recapture taxed up to 25 percent, the 3.8 percent NIIT if it applies, and your state tax. Enter your numbers above to see an estimate for your situation.
What are the 45 and 180-day rules?
From the day you close on the property you sell, you have 45 days to formally identify replacement properties and 180 days total to close on one. Both clocks run at the same time and there are no extensions except in certain federally declared disasters.
What is boot?
Boot is any cash you pocket or debt you do not replace in the exchange. Boot is taxable in the year of the exchange even though the rest of your gain is deferred, so taking cash out or trading down to a cheaper property creates a current tax bill.
Do I need a Qualified Intermediary?
Yes. You cannot take possession of the sale proceeds. A Qualified Intermediary holds the funds between the sale and the purchase. Choosing a QI with segregated accounts and strong fund security matters because the industry is not federally regulated.
Is this calculator tax advice?
No. It is an educational estimate using simplified assumptions and does not reflect your full tax situation. Confirm the numbers with a CPA or tax attorney before relying on them.