1031 Exchange Calculator
Model an IRC § 1031 like-kind exchange. See deferred vs recognized gain, boot, new basis, and total tax saved. Accurate as of April 2026.
Rates current as of April 2026
2026 federal IRS brackets (post-OBBBA permanent extensions) and all 50-state + DC statute rates. § 1031 rules per TCJA / IRS Rev Proc.
Relinquished property
Purchase + improvements + buy costs.
Total § 1250 recapture risk.
Replacement property
To fully defer, this must equal or exceed your net sale proceeds.
Cash you put in on top of the 1031 proceeds (from savings, new mortgage, etc.).
Required for any deferred 1031 — the QI holds your sale proceeds in escrow so you don't have constructive receipt. Typical $750–$2,000 (some charge 0.05–0.1% of sale price for larger deals).
Tax profile
Tax Deferred
$207,035
Full exchange — zero tax owed today
Tax Due Now
$0
No boot received — fully deferred
New Basis in Replacement
$320,000
Carries over deferred gain for when you eventually sell
What this means for you
- WINRolling the full proceeds into a like-kind property defers about $207,035 of tax on your $620,000 gain — the capital that would have gone to the IRS keeps compounding in the next deal.
- TIPWith no boot taken and the debt replaced, the entire gain defers. Mind the clock: 45 days to identify the replacement and 180 days to close, or the deferral fails.
Net cash to redeploy: $938,500
Sale proceeds $940,000 + additional cash $0 − tax $0 − QI fee $1,500.
Exchange breakdown
Timeline reminders
45 days from sale closing to identify replacement property in writing to your Qualified Intermediary. 180 days total (including the 45) to close on one identified property. Miss either and the exchange fails — pay full tax.
Not tax or legal advice.
Structuring a 1031 exchange requires a Qualified Intermediary and often a tax attorney. Mistakes — including touching proceeds personally, missing deadlines, or receiving unexpected boot — can trigger full tax liability plus penalties. Always consult a 1031-specific CPA and QI before closing.