Tax Deferral Calculator
Compute the exact capital gains and depreciation recapture taxes you defer with a 1031 exchange.
Full Tax Liability Breakdown
The tax deferral calculator computes the two components of tax you avoid by exchanging: capital gains tax on appreciation and depreciation recapture tax on the accumulated write-offs. Both are calculated from your actual property data — purchase price, current value, years held, and land value percentage.
- Adjusted basis calculation: purchase price minus accumulated depreciation over 27.5-year schedule
- Total gain breakdown: appreciation gain vs. depreciation recapture, each taxed at different rates
- Capital gains tax computed at your federal + state rate on the appreciation portion
- Depreciation recapture tax at the 25% federal recapture rate on accumulated write-offs
See the True Cost of Selling
Most investors underestimate how much tax they owe when selling a rental property because they forget about depreciation recapture. On a property held for 10 years, recapture alone can add $30,000-$50,000 to your tax bill. The deferral calculator shows you the full picture so you can make an informed decision.
- Side-by-side comparison: sell-and-pay net proceeds vs. exchange equity
- Exact dollar amount of tax deferred — typically 15-25% of total gain
- Extra equity available for reinvestment when you defer instead of pay
- Boot tax impact: if you take cash out of the exchange, see the partial tax owed
Sample Output
See what this feature calculates for you.
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