Before sell­ing appre­ci­at­ed invest­ment real estate, it can be help­ful to esti­mate the poten­tial finan­cial dif­fer­ence between sell­ing and rec­og­niz­ing the tax­able gain ver­sus com­plet­ing a qual­i­fy­ing Sec­tion 1031 exchange.

The DSTNews.org Estimator Can Help Model

• Sale price
• Sell­ing expens­es
• Debt pay­off
• Adjust­ed tax basis
• Depre­ci­a­tion
• Esti­mat­ed real­ized gain
• Esti­mat­ed fed­er­al tax­es
• Esti­mat­ed state tax­es
• Poten­tial after-tax equi­ty
• Poten­tial tax defer­ral
• Replace­ment-prop­er­ty con­sid­er­a­tions
• 45-day iden­ti­fi­ca­tion date
• 180-day exchange date

Start With the Numbers

Under­stand­ing the poten­tial tax expo­sure can help investors eval­u­ate whether Sec­tion 1031 should be con­sid­ered before the relin­quished prop­er­ty clos­es.

[CAPITAL_GAINS_TAX_ESTIMATOR]

Important

The cal­cu­la­tor pro­vides an edu­ca­tion­al esti­mate only. Actu­al cap­i­tal gains, depre­ci­a­tion recap­ture, Net Invest­ment Income Tax, state tax­es, basis adjust­ments, boot, and Sec­tion 1031 con­se­quences depend on the tax­pay­er’s com­plete cir­cum­stances.

Key Point: Use the cal­cu­la­tor as a plan­ning tool — not as a sub­sti­tute for pro­fes­sion­al tax advice.

Ref­er­ence Sources

• IRS — Like-Kind Exchanges: Real Estate Tax Tips

Impor­tant: This mate­r­i­al is for edu­ca­tion­al pur­pos­es only and is not tax, legal, account­ing, or invest­ment advice. Sec­tion 1031 out­comes depend on the tax­pay­er’s facts and com­pli­ance with applic­a­ble require­ments.