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.