What is a 1031 Exchange?

A 1031 exchange allows investors to defer capital gains taxes by reinvesting proceeds from a property sale into a like-kind replacement property.

What are the 1031 exchange deadlines?

You have 45 days to identify replacement properties and 180 days to close on the replacement property from the sale of your original property.

What properties qualify for 1031 exchanges?

Investment and business properties qualify. Primary residences do not. The replacement must be of equal or greater value to fully defer taxes.

Can I exchange into multiple properties?

Yes, you can identify up to three properties regardless of value, or more properties if their total value doesn't exceed 200% of the sold property.

Free Calculator

1031 Exchange Calculator

Calculate your tax-deferred exchange requirements, boot exposure, and potential tax savings. Plan your like-kind exchange to maximize wealth preservation.

1Relinquished Property (Selling)

The property you are selling

Sale Price

Selling Costs

Original Purchase Price

+ Improvements

- Depreciation Taken

Existing Mortgage Balance

Sale/Close Date

2Replacement Property (Buying)

The property you are acquiring

Purchase Price

New Mortgage

Buying Costs

Full Deferral Requirements

Replacement price ≥ Sale price ($0)

New mortgage ≥ Old mortgage ($0)

Tax Rates

Adjust based on your tax situation

Capital Gains (%)

Depreciation Recapture (%)

State Tax (%)

NIIT (%)

Exchange Analysis

Tax Deferred

Gain Analysis

Adjusted Basis$0

Net Sale Proceeds$0

Realized Gain$0

Deferred

Deferred Gain$0

New Property Basis$0

1031 Exchange Rules

• Properties must be "like-kind" (investment to investment)
• 45 days to identify replacement properties
• 180 days to close on replacement property
• Must use a Qualified Intermediary

How It Works

1. Enter Relinquished Property

Input sale price, original basis, improvements, depreciation, and existing mortgage for the property you're selling.

2. Add Replacement Property

Enter the purchase price, new mortgage, and closing costs for your replacement property.

3. See Tax Deferral & Deadlines

Get instant calculations for tax deferral, boot exposure, and critical 45-day and 180-day deadlines.

Frequently Asked Questions

Master the 1031 Exchange: The Ultimate Tax Deferral Strategy

The 1031 exchange is one of the most powerful wealth-building tools available to real estate investors. By deferring capital gains taxes when selling investment property, you can reinvest 100% of your equity into a larger or more profitable property. Our free 1031 exchange calculator helps you plan your exchange by calculating tax deferral, identifying boot exposure, and tracking critical deadlines.

Avoid Common 1031 Exchange Mistakes

Many exchanges fail due to preventable errors. The most common include missing the 45-day identification deadline, receiving cash boot accidentally, reducing mortgage debt without proper planning, and not using a Qualified Intermediary from the start. This calculator helps you identify potential boot issues before they become costly problems, showing exactly what replacement property value and debt level you need for full deferral.

Planning for Long-Term Wealth Building

Strategic investors use 1031 exchanges repeatedly throughout their careers, continually deferring taxes while upgrading to larger, more profitable properties. Some investors even hold until death, when heirs receive a stepped-up basis and all deferred gains are eliminated. Whether you're doing your first exchange or your tenth, proper planning with accurate calculations is essential for maximizing your tax benefits.