Real Estate & Mortgage
Section 1031 Exchange Deferral
Estimate the capital gains tax deferred by rolling sale proceeds into a like-kind 1031 exchange.
Your inputs
Change any value to update the result instantly.
Estimated tax deferred
76,000
Total capital gain
3,50,000
Depreciation recapture tax
30,000
Capital gains tax deferred
46,000
A 1031 exchange defers tax rather than eliminating it; consult a qualified intermediary and CPA for actual eligibility.
Formula and working
Deferred tax = (Sale price − Adjusted basis) × (Capital gains rate + Depreciation recapture rate)
- 1
Collect the inputs
Relinquished property sale price = 800,000; Adjusted cost basis = 450,000; Accumulated depreciation taken = 120,000; Long-term capital gains rate = 20 %; Depreciation recapture rate = 25 %
- 2
Apply the formula
Deferred tax = (Sale price − Adjusted basis) × (Capital gains rate + Depreciation recapture rate)
- 3
Result
Estimated tax deferred = 76,000
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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