1031 Exchange Calculator (2026) | Tax Savings, Recapture & Boot | Lofty
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1031 Exchange Calculator
See what you would owe on an outright sale and what a 1031 exchange may defer. Includes federal capital gains, depreciation recapture (up to 25%), NIIT (3.8%), state tax, boot, and the reinvestable cash difference.
Your numbers
| Metric | Value |
|---|---|
| Sale price | $245,250 |
| Selling costs | 6-8% |
| Mortgage payoff | $29,750 |
| Adjusted basis | $210,000 |
Tax rates
- Federal long-term gains rate %: 0% up to ~$49K single / $99K MFJ taxable income, 15% up to ~$546K / $614K, 20% above.
Outright sale vs. 1031 exchange
Outright sale
- Net sale proceeds: $245,250
- Federal long-term gains: -$25,050
- Depreciation recapture: -$15,000
- NIIT (3.8%): -$7,040
- State capital gains: -$9,263
- Cash after tax: $188,898
1031 exchange
- Net sale proceeds: $245,250
- Federal tax due now: $0
- State tax due now: $0
- Tax deferred (carries into new basis): $56,352
- Cash to reinvest: $245,250
- Cash uplift from 1031: $56,352 (30% more reinvestable capital)
Overview
A 1031 exchange calculator estimates federal capital gains, depreciation recapture, NIIT, and state tax on the sale of an investment property, and shows the side-by-side difference between an outright sale and a like-kind exchange. The federal tax bill is generally deferred by a valid 1031, while state treatment varies.
How to run a 1031 exchange analysis
- Enter the sale details: Add the expected sale price, selling costs, and the outstanding mortgage balance to be paid off at closing.
- Add your cost basis: Enter the original purchase price, capital improvements, and cumulative depreciation taken.
- Set tax rates that apply to you: Pick a federal long-term capital gains rate, NIIT, and add your state rate.
- Compare outright sale vs 1031 exchange: Review the side-by-side panel.
- Check the 45/180-day exchange timeline: Ensure compliance with the time frames required for a 1031 exchange.
Key terms in plain English
- 1031 exchange: Like-kind exchange that defers federal tax on investment property.
- Adjusted cost basis: Purchase price + improvements - depreciation taken.
- Depreciation recapture: Tax on the depreciation deductions reclaimed at sale.
- NIIT: 3.8% Net Investment Income Tax on high earners.
- Boot: Non-like-kind value received in a 1031 exchange.
People also ask
- How is the tax on a rental sale calculated? Take the net sale proceeds and subtract the adjusted cost basis.
- What does a 1031 exchange actually defer? It defers federal capital gains tax and federal depreciation recapture.
- How long do you have to complete a 1031 exchange? You generally have 45 calendar days after the relinquished property closes to identify replacement property in writing.
- Can you do a 1031 exchange on a primary residence? No, generally it does not qualify because Section 1031 applies to property held for investment or business use.