§ 1031 - CAPITAL GAIN TAX CALCULATION

These calculations show the approximate capital gain taxes deferred by performing an IRC §1031 exchange.
Enter the values in the fields provided (enter numbers with no commas or dollar signs, for example: 300000) and click on the "Calculate" button in each area to perform the calculations.

1. Calculate Net Adjusted Basis:    
Original Purchase Price
 $
plus Improvements
+ $
minus Depreciation
 - $
= NET ADJUSTED BASIS    = $
 
2. Calculate Capital Gain Sales Price of Property:
Sales Price $
minus Net Adjusted Basis - $
minus Costs of Sale (commissions, fees, etc.) - $
= CAPITAL GAIN    = $
 
3. Calculate Capital Gain Tax Due:
Recaptured Depreciation (25%) $
plus Federal Capital Gain Rate (20%) + $
plus State Capital Gain Rate
(enter your tax rate here) 		  tax %
+ $
= TOTAL TAXES DUE    = $
 
4. Calculate After-Tax Equity:
Sales Price $
minus costs of sale - $
minus loan balances - $
= GROSS EQUITY = $
minus Capital Gain Taxes Due - $
= AFTER-TAX EQUITY    = $
 
5. Analyze Reinvestment - Sale:
AFTER-TAX EQUITY x 4     = $
 
6. Analyze Reinvestment - Exchange:
Capital Gain Taxes Due $
Gross Equity = Net Equity $
GROSS EQUITY x 4    = $

PropertiesRealtor.com cannot provide tax and/or legal advice. Every investor should always seek the advice of their tax and/or legal advisors regarding their specific situation.