Tools & Calculators

1031 Exchange Calculators

See how your rental is really performing, what selling would cost you in tax, and what keeping that tax invested through a 1031 exchange could be worth. Every rate and return is an assumption you enter or adjust. These are educational estimates, not tax, legal, or investment advice.

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Calculator 1

Asset Performance Review

How hard is the equity in your rental actually working? Enter your property’s income and expenses to see its cap rate, true monthly cash flow, and the number most owners never check: the return on the equity trapped in the property today, not on what you paid years ago.

Estimated current property valueWhat it would sell for today

Mortgage balanceTotal debt on the property

Monthly mortgage paymentPrincipal & interest only

Gross monthly rent

Annual property tax

Annual insurance

Property management & CAM / yrOften ~10% of gross rent with a manager

Maintenance & reserves / yr~5 to 7% of gross rent is typical

Vacancy & leasing costs / yr~2 to 10% of gross rent

Ancillary expenses / yrHOA, gardener, pool, utilities you cover…

Benchmark passive returnFor comparison, e.g. a moderate DST-style cash yield

Net cash-on-equity return

Current cap rate

Net monthly cash flow

Equity in the property

Cap rate = net operating income ÷ current value. Cash-on-equity = (NOI − annual debt service) ÷ current equity. The benchmark comparison is illustrative only. Passive investments carry their own risks and returns are never guaranteed.

Calculator 2

Capital Gains Tax Worksheet

Estimate the tax you could owe if you sell an investment property without a 1031 exchange: federal capital gains, the 3.8% net investment income tax, a depreciation recapture surcharge, and your state’s tax. The result is roughly the amount a 1031 exchange could defer.

Sale priceWhat you’re selling for

Selling costsCommissions, inspections, escrow, closing…

Mortgage balance at saleUsed to figure your equity proceeds

Original purchase priceIf inherited, use the stepped-up basis value

Capital improvementsAdded to your cost basis

Accumulated depreciationTotal depreciation claimed, or estimate it below

Not sure? Estimate my depreciation for meRough straight-line estimate: half the purchase price treated as building value, depreciated over the schedule for your property type

Federal capital gains rateAuto: 20% on larger gains, 15% otherwise

Depreciation recapture surchargeRecapture is taxed ~5% above the capital gains rate

StateSets the state rate below; edit it if you like

State tax rate on the gain

Apply 3.8% Net Investment Income Tax (NIIT)Applies to many higher-income investors

Estimated total tax if you sell

Total capital gain

Tax as % of your equity

After-tax equity left

State rates are approximate top marginal income-tax rates and change over time; several states also treat gains differently. This simplified model applies the federal rate to the whole gain plus a surcharge on depreciation. Your CPA’s calculation will differ based on your brackets and facts.

Calculator 3

The Power of the 1031 Exchange

Side by side: what your equity can do if you defer the tax through a 1031 exchange versus selling, paying the tax, and reinvesting what’s left. Numbers flow in automatically from Calculator 2, or enter your own.

Gross equity proceeds from saleSale price − selling costs − mortgage

Estimated tax if you sellFrom Calculator 2, or your own figure

Assumed cash-on-cash returnApplied to both paths, e.g. a moderate DST-style yield

Hold period (years)

Down payment if buying directlyFor the buying-power comparison

	1031 Exchange	Sell & Pay Tax

Extra income per year with a 1031

Years of income just to earn back the tax

“DST buying power” assumes an all-equity passive investment; “direct purchase buying power” assumes your down-payment percentage with the balance financed. Cash flow figures are pre-tax and assume the same cash-on-cash rate on both paths. Returns are hypothetical assumptions, not projections or offers.

Calculator 4

Sell vs. 1031 Exchange: Long-Term Outcome

Compare keeping your full equity working through a 1031 exchange against selling, paying the tax now, and reinvesting what’s left. Because a 1031 defers tax, more capital stays invested and compounds. Enter your own assumed returns.

Equity / proceeds before taxNet sale proceeds available to reinvest

Tax owed if you sell nowFrom Calculator 2, or your own figure

Holding period (years)

Assumed annual returnSame rate applied to both paths

Pay the deferred tax at the end of the period for the 1031 pathConservative view: assumes you eventually cash out and owe the deferred tax (estate planning may eliminate it)

Sell & reinvest after-tax

1031 exchange (full equity)

1031 advantage

Calculator 5

1031 Real Estate vs. Selling & Investing in Stocks

Weigh reinvesting your proceeds into real estate through a 1031 exchange against selling, paying the tax, and putting the remainder into the stock market (e.g., an S&P 500 index fund). Returns are assumptions you set; markets and properties both carry risk and neither outcome is guaranteed.

Proceeds before tax

Tax owed if you sellSkipped on the 1031 path

Holding period (years)

Real estate total return / yrAppreciation + net income, your estimate

Stock market return / yrYour S&P 500 / equities estimate

Real estate via 1031

Sell, pay tax, buy stocks

Difference

This compares pre-tax ending values for illustration. It does not model annual taxes on stock dividends, real-estate depreciation, financing/leverage, transaction costs, or the tax eventually due on either asset. It is a simplified estimate, not advice.

Calculator 6

45 / 180-Day Deadline Calculator

A 1031 exchange runs on two hard clocks that both start the day your sale (relinquished property) closes. Enter your closing date to see both deadlines.

Closing date of your saleThe day the relinquished property closes

Both clocks run at the same time: the 45-day window is inside the 180-day window, not added to it.

45-day deadline: identify replacement(s)

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180-day deadline: close on replacement

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Note: the 180-day period can be cut short by your tax-return due date for the year of the sale (including extensions). A Qualified Intermediary must hold the proceeds the entire time. Confirm exact dates with your QI and CPA.

Educational use only. These calculators provide simplified estimates based on the figures you enter and do not constitute tax, legal, or investment advice, nor an offer or solicitation regarding any security. Capital gains, depreciation recapture, NIIT, and state tax rules are complex and depend on your specific facts. Delaware Statutory Trusts are available only to accredited investors through licensed broker-dealers. Always confirm your numbers with a qualified CPA, tax attorney, and licensed advisor before acting.

Educational purposes only. 1031InvestorGuide is not an offer to sell or a solicitation to buy any security, and is not tax, legal, or investment advice. Delaware Statutory Trusts are available only to accredited investors through licensed broker-dealers. Past performance is not indicative of future results. Consult your own advisors.

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