1031 Exchange Calculator

Estimate the federal capital gains tax, depreciation recapture, NIIT, and state tax you can defer by completing a properly structured 1031 exchange instead of an outright cash sale. replacement property before the exchange deadline.

1031 Exchange Calculator

Estimate the federal capital gains tax, depreciation recapture, NIIT, and state tax you can defer by completing a properly structured 1031 exchange instead of an outright cash sale.

Filing status Property stateTop marginal state rate is applied. Actual rate may be lower at lower income. Sale price ($) Original purchase price ($) Capital improvements ($)Major capital improvements added to basis (not repairs). Accumulated depreciation ($)Depreciation taken or allowable while held as rental, investment, or business-use property. Selling expenses ($)Commissions, escrow, title, and closing costs at sale. Mortgage payoff at closing ($)Loan balance to be paid off at relinquished property closing. Other taxable income before sale ($)Used to determine your federal LTCG bracket and NIIT exposure.

This calculator is for educational and planning use only. It does not collect, transmit, or store any data — all calculations run inside your browser. Federal and state tax brackets change. Results are estimates and should not be relied on as legal, tax, or financial advice. Confirm any exchange structure with a CPA or qualified tax advisor before closing.

Our Nationwide 1031 Exchange Calculator Services

Free, Instant, and Backed by a CPA-Led Qualified Intermediary

Federal LTCG Tax Deferred

Depreciation Recapture Deferred

State Tax Deferred

A 1031 exchange lets you sell an investment or business property and roll the full proceeds into a like-kind replacement property without paying tax on the gain in the year of sale. The calculator estimates the three pieces of that gain you get to defer: federal long-term capital gains, the depreciation you would otherwise have to recapture, and your state’s tax on the sale. Universal Pacific 1031 acts as your qualified intermediary nationwide, holding the sale proceeds, preparing the exchange agreement, and coordinating both closings so the deferral holds up.

What the Calculator Tells You

Tax Owed If You Sell Outright

Tax Deferred via 1031 Exchange

Minimum Replacement Property Value

The calculator shows you three numbers worth knowing before you list the property: what you would owe in tax if you simply sold and took the cash, how much of that tax a 1031 exchange defers, and the minimum you need to spend on the replacement property to defer the full gain. Put the outright-sale figure next to the exchange figure and you can see, in dollars, what a properly structured exchange keeps working for you instead of handing to the IRS. Run different sale prices and replacement values to see how the deferral moves.

How the 1031 Exchange Calculator Estimates Your Tax Deferral

This calculator estimates four tax components that a properly structured 1031 exchange defers when you reinvest sale proceeds into qualifying replacement real estate. Depreciation recapture (Section 1250): Depreciation previously claimed is recaptured at up to 25% in an outright sale; a 1031 exchange defers this entirely when basis carries forward into the replacement property. Federal capital gains tax: 0%, 15%, or 20% on the non-depreciation portion of the gain, applied based on your filing status and total taxable income. Net Investment Income Tax (NIIT): An additional 3.8% on net investment income above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). State capital gains tax: Most states tax capital gains as ordinary income. Top marginal rates range from 0% (Florida, Texas, Nevada, Washington, and a handful of others) to 13.3% (California). Most states honor the federal 1031 deferral; confirm your state’s conformity with your CPA.

Compliance with IRS Section 1031 Deadlines

Every 1031 exchange runs on two IRS deadlines that start the day your relinquished property closes. You have 45 days to identify replacement property in writing to your qualified intermediary, and 180 days to close on it. Both clocks run at the same time, not back to back, and neither gets extended for weekends, holidays, or a deal that falls through at the last minute. Miss either one and the exchange fails, which makes the whole gain taxable in the current year. When the replacement property has to close before your sale does, the structure you need is a reverse 1031 exchange, where an exchange accommodation titleholder parks one of the properties and the same 45-day and 180-day clocks run from the parking date. Universal Pacific 1031 tracks both deadlines for you and confirms every identification and closing lands inside the window. Review the tax treatment with your CPA or tax advisor before structuring the exchange.

Replacement Property Requirements for Full Deferral

To defer 100% of your gain, the replacement property generally has to cost as much as or more than the net sale price of what you sold, and you have to reinvest all of your equity. You also need to replace any debt that was paid off at closing, either with new financing on the replacement property or with cash out of your own pocket. Come up short on the value or the equity and the difference is treated as boot, which is taxable this year. The property has to be like-kind real estate held for investment or business use, and almost any investment real estate qualifies as like-kind to any other.

How It Works

Sale Price & Selling Expenses

Original Basis & Depreciation

Filing Status & State

Before you close on the sale, we set up the exchange agreement and step in as your qualified intermediary so the proceeds never touch your hands. At closing, the funds come to us and sit in a segregated account. From there you have 45 days to identify replacement property and 180 days to close, and we wire the funds straight to that closing when you are ready. Once the exchange wraps up, your CPA gets the documentation needed to report it on IRS Form 8824. What the intermediary work costs, plus the escrow, title, and recording charges an exchange adds at closing, is itemized on our 1031 exchange cost page.

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FAQ

How accurate is this 1031 exchange calculator?

The calculator gives a planning-grade estimate based on 2026 federal tax brackets, top marginal state rates, and the inputs you provide. It captures federal capital gains, depreciation recapture (25% unrecaptured Section 1250), NIIT (3.8% above filing-status thresholds), and state tax. Confirm any specific exchange position with your CPA before closing — AMT, multi-state allocation, installment sales, mortgage debt relief, and partial-year residency can change the result.

Does my data get stored or sent anywhere?

No. The calculator runs entirely in your browser. Sale prices, basis, depreciation, mortgage payoff, and income figures are never submitted to a server. Refresh the page and the data is gone. You can also use the Reset button to clear all fields.

What types of property qualify for a 1031 exchange?

Section 1031 covers real property held for investment, business, or productive use in a trade. This includes rental property, commercial real estate, industrial buildings, raw land held for investment, and most income-producing real estate. Primary residences, second homes used primarily for personal enjoyment, dealer inventory, stocks, bonds, and partnership interests do not qualify. Confirm eligibility with your CPA before initiating the exchange.

What is the minimum replacement property value for full deferral?

To defer 100% of the gain, the replacement property must generally equal or exceed the relinquished property’s sale price, AND all equity (sale price minus mortgage payoff minus exchange expenses) must be reinvested, AND the replacement property must carry at least the same level of debt that was paid off. Reinvesting less, buying a lower-value property, or reducing debt without offsetting cash creates taxable boot. The calculator shows your minimum replacement value and equity available to reinvest.

How long do I have to complete a 1031 exchange?

Two hard IRS deadlines: 45 days from the relinquished property closing to formally identify candidate replacement properties (in writing, to the qualified intermediary), and 180 days from the relinquished property closing (or your tax return due date, whichever is earlier) to close on the identified replacement property. Missing either deadline fails the exchange and triggers full tax recognition in the year of sale.

Do I still owe depreciation recapture if I do a 1031 exchange?

No — not in the year of the exchange. Depreciation recapture (taxed at up to 25% under unrecaptured Section 1250) is deferred along with the rest of the gain when you complete a properly structured 1031 exchange. The depreciation basis carries forward into the replacement property and continues to depreciate from the carried-over basis. The tax is not eliminated; it remains deferred as long as the exchange chain continues.

What happens if my replacement property is worth less than my sale price?

You can still complete a partial 1031 exchange. The portion reinvested into qualifying replacement property remains tax-deferred. The difference (called “boot” — cash, debt relief, or non-like-kind property received) is taxable in the year of the exchange, recognized first as depreciation recapture, then as capital gain. A qualified intermediary can structure the partial exchange to maximize the deferred portion.

1031 Exchange Calculator

Estimate the federal capital gains tax, depreciation recapture, NIIT, and state tax you can defer by completing a properly structured 1031 exchange instead of an outright cash sale. replacement property before the exchange deadline.