Arete TOOLS · REAL ESTATE

1031 Exchange Tax Savings Estimator

Compare a taxable sale with a qualifying exchange and estimate how much current tax could be deferred.

01 · Sale & adjusted basis

Sale price ($)

Qualified selling expenses ($)

Original total tax basis ($)Includes land and capitalized acquisition costs.

Capital improvements added to basis ($)

Accumulated straight-line building depreciation ($)Depreciation allowed or allowable. This model excludes Section 1245 assets and ordinary recapture.

02 · Exchange assumptions

Replacement property cost ($)Include qualifying capitalized acquisition costs.

Net taxable boot ($)Get this amount from your intermediary/advisor: cash and other property received plus net debt relief, after allowable offsets. Enter total net boot once.

Exchange fee ($)Cash cost only; excluded from the gain and boot calculations. Include eligible costs in the appropriate inputs above.

Both properties qualify for a Section 1031 exchange?Investment/business real property; qualifying use and exchange arrangements must be satisfied.

03 · Tax rates

Federal long-term capital gains rate

Unrecaptured Section 1250 rate (%)25% maximum; lower rates may apply.

NIIT on all modeled recognized gain?Select No if not subject to NIIT. Income thresholds and mixed allocations are not modeled.

State tax rate (%)

State conforms to this exchange?

04 · Exchange timeline

Relinquished property transfer date

Return due date, including any extension