1031 Exchange Calculator
Calculate exchange requirements, tax exposure, and critical deadlines
1031 Exchange Timeline
45-Day ID DeadlineJune 16, 2024
180-Day DeadlineOctober 29, 2024
Sale Details
Details of property being sold
Net Proceeds$4,101,040
Loan-to-Value (LTV)26.82%
Net Equity to 1031$3,001,040
Cost Basis & Tax Info
For tax calculation purposes
State Tax Rate5.0%
Amount of Cash Out
Cash taken out will be taxable as "boot"
1031 Exchange Timeline
Critical deadlines for your exchange
Closing Date
May 2, 2024
45-Day ID Deadline
June 16, 2024
180-Day Deadline
October 29, 2024
1031 Exchange Results
Summary of your 1031 exchange
Amount of Cash Out
$300,000
1031 Exchange Constraints
Amount of Equity to Be Placed in 1031
$2,701,040Amount of Debt to Be Replaced
$1,100,000Total Real Estate to Be Replaced
$3,801,040Loan-to-Value (LTV)
28.94%Note: Cash out of $300,000 will be subject to taxes as "boot"
Tax Exposure without 1031 Exchange
Detailed breakdown of estimated tax liability
Capital Gains$650,000
State Tax$212,500
Depreciation Recapture$250,000
Net Investment Income (NIIT)$161,500
Total Tax Liability$238,000
Based on capital gains of $4,250,000 and depreciation taken of $1,000,000
Growth of 1031 Exchange vs. No 1031 Exchange
Compare long-term outcomes with and without tax-deferred exchange
With 1031 Exchange
Starting Capital
$4,101,040Taxes Paid at Sale$0
10-Year Value (@ 8% Annual Return)
$8,853,838Without 1031 Exchange
Net Proceeds$4,101,040
Taxes Paid at Sale-$238,000
Starting Capital
$3,863,04010-Year Value (@ 8% Annual Return)$8,340,014
Tax Savings
$238,000
Years to Recover Tax Loss
1
at 8% annual return
Required Annual Return to Match 1031 Portfolio
8.6%
to match 1031 in 10 years
10-Year Wealth Advantage with 1031 Exchange
$513,824
More wealth from tax-deferred compounding over 10 years at 8% annual return
*Rate of return assumes both appreciation + cash flow over the holding period