1031 Exchange Calculator
A 1031 exchange lets a US real estate investor sell and reinvest without paying capital gains tax today. This calculator estimates your realized gain, the federal tax bill if you sell outright (including depreciation recapture and NIIT), and how much the exchange defers — plus the two deadlines that kill most exchanges.
The math of deferral
Realized gain = sale price − adjusted basis + depreciation taken − selling costs. Depreciation 'adds back' because it reduced your basis over the years.
Tax if sold now: the depreciation portion is generally taxed at up to 25% (unrecaptured Section 1250 gain), the rest at 20% long-term capital gains, plus 3.8% NIIT where it applies. State tax is extra and excluded here.
The deadlines: 45 days from closing to identify replacement property in writing, 180 days to close it. Miss either and the exchange fails — the tax becomes due.
Frequently asked questions
Does a 1031 eliminate the tax?
No — it defers it. Your basis carries into the new property. Many investors hold until death, when heirs get a stepped-up basis, which is how deferral becomes elimination.
Can foreigners do 1031 exchanges?
Yes — foreign persons can exchange US property for US property. FIRPTA withholding still applies at the sale, with the qualified intermediary handling the flow of funds.
What counts as 'like-kind'?
US real estate held for investment or business use — almost any type for any type (rental house for apartments, land for retail). Personal residences and flips held for resale do not qualify.
Related tools
- Rules: IRC §1031, §1250, NIIT (§1411); 45/180-day deadlines per §1031 regulations. Federal estimate only — state tax and professional structuring excluded.
Last updated: 2026-09-08