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Future Tax Liability Tracker

Track how tax liability shifts across scenarios — latent when you keep, eliminated when you sell, and deferred in a 1031 exchange.

How Tax Liability Tracking Works

Every scenario carries different tax implications. Keeping your property means the tax liability sits latent — you owe nothing now, but it grows as the property appreciates. A traditional sale eliminates it by paying taxes at closing. A 1031 exchange defers it to the replacement property.

  • Keep: tax liability is latent and grows with appreciation
  • Traditional Sale: taxes paid at closing — liability eliminated
  • 1031 Exchange: liability deferred to replacement property
  • Side-by-side comparison of all three tax positions
  • See the exact dollar amounts for depreciation recapture and capital gains

Why Deferred Does Not Mean Free

A 1031 exchange may look like the clear winner on paper — you avoid paying taxes and reinvest the full equity. But the deferred tax liability transfers to the replacement property. When you eventually sell without another exchange, the tax bill comes due on the accumulated gains from every property in the chain.

  • 1031 defers taxes — it does not eliminate them
  • Each exchange in a chain compounds the deferred liability
  • Traditional sale may net less today but starts clean
  • Compare the true cost of tax deferral vs. paying now

See It in Action

See how tax liability changes across Keep, Traditional Sale, and 1031 Exchange scenarios.

apps.refp.com/should-i-sell-rental/
Keep
$23,000
Latent

Tax liability exists but is not due until you sell

Traditional
$0
Eliminated

Taxes paid at closing — clean slate

1031 Exchange
$23,000
Deferred

Tax transfers to replacement property

Simplified preview — the actual app uses your real property data.

Ready to Use Future Tax Liability Tracker?

Get access to this feature and everything else in Should I Sell My Rental Property?.