1031 Exchange Calculator — Estimate Your Capital Gains Tax Deferral
Free 1031 exchange calculator: estimate the capital gains tax you can defer on a property sale, including depreciation recapture, boot, and 1031 deadlines.
Property & Tax Details
Enter your property sale details to estimate your potential tax deferral.
Your Sale Proceeds Breakdown
Tax Breakdown
This is the estimated tax you could defer by completing a 1031 exchange into like-kind replacement property.
Ready to Explore a 1031 Exchange?
The 45- and 180-day deadlines are fixed by the IRS, so early planning helps. Talk to a specialist about your specific situation.
How a 1031 Exchange Defers Capital Gains Tax
Under Section 1031 of the Internal Revenue Code, an investor who sells investment or business real estate and reinvests the proceeds in like-kind property can defer federal capital gains tax, depreciation recapture, and the 3.8% Net Investment Income Tax that would otherwise be due at sale. The tax isn’t forgiven — your basis carries into the new property — but deferral keeps your full equity working for you instead of losing 20–35%+ of your gain to taxes at each sale. Investors who exchange repeatedly and hold until death may see deferred gains eliminated entirely through the step-up in basis their heirs receive.
This calculator estimates the total tax you could defer on a sale: federal long-term capital gains (0%, 15%, or 20% depending on income), 25% depreciation recapture on the depreciation you’ve taken, and NIIT where it applies. Texas investors have a structural advantage here — Texas imposes no state capital gains tax, so a properly executed exchange can defer essentially the entire tax bill.
Partial Exchanges and Boot
You don’t have to reinvest everything. In a partial 1031 exchange, you take some cash off the table and exchange the rest. The portion you keep — cash, or debt you don’t replace — is called boot, and it’s taxable in the year of sale. Boot is taxed at your capital-gains and recapture rates up to the amount of your total gain. Use the calculator’s reinvestment field to model different splits and see the estimated tax cost of pulling cash out versus fully deferring.
Watch the Clock: 45 and 180 Days
The two deadlines that sink more exchanges than anything else: 45 days from closing to identify replacement property in writing, and 180 days to complete the purchase. Both run concurrently from the day your sale closes, and neither can be extended. The timeline section above generates your exact deadline dates with downloadable calendar reminders, and our 1031 exchange timeline guide walks through each phase — including the identification rules (three-property, 200%, and 95% tests) and the most common timing mistakes. Wondering about fees? See what a 1031 exchange actually costs.
When a DST Makes Sense
Investors who want to defer tax but are done with active management often exchange into a Delaware Statutory Trust (DST) — fractional, institutionally managed real estate that qualifies as like-kind replacement property. DSTs can also solve the 45-day identification problem, since inventory is typically available to identify and close quickly. Grace Capital Management helps accredited investors evaluate DST and other 1031 replacement options alongside broader tax strategies.
This tool and page are educational only and are not tax, legal, or investment advice. Consult your CPA or tax advisor about your specific situation. If you’d like to talk through an upcoming sale, contact us — initial conversations are without obligation.