1031 exchange calculator can help you to determine the tax deferment and benefits you can realize by performing a 1031 section like-kind exchange rather than a taxable real estate sale. Over the course of multiple transactions, the geometric growth in your capital can be substantial.
Below is a list of 1031 exchange calculators which can help you determine if a 1031 exchange is right for you.
- 1031 Exchange Tax Capital Gain Calculator
- 1031 Exchange Date Calculator
- Mortgage Calculator
- Capital Gains Calculator for 1031
- 1031 Exchange Calculator
- 1031 Exchange Analysis Calculator
- 1031 Tax Deferment
- Mortgage Payment Calculator
- Replacement Property Basis Formula
About 1031 Exchanges
A 1031 Exchange is like-kind property exchange. It’s a powerful tax-deferment strategy which is used by some of the most financially successful investors.
The term 1031 Exchange come from section 1031 of the IRS Code. This strategy allows an investor to defer paying capital gains taxes on an investment property when it is sold. However, the catch is if its another like-kind property which is purchased with the profit gained by the sale of the first property.
Under section 1031, any proceeds received from the sale of a property remain taxable. This is the reason the proceeds from the sale must be transferred to a qualified intermediary, rather than the seller of the property. A qualified intermediary is a person or company who agrees to facilitate the 1031 exchange by holding the funds involved in the transaction until they can be transferred to the seller of the replacement property. A qualified intermediary may not have any other formal relationship with the parties exchanging property.
Since the size of the depreciation recaptured increases over time, you may want to engage in a 1031 exchange to avoid the large increase in taxable income that depreciation recapture would cause later. Depreciation recapture will be a factor to account for when calculating the value of any 1031 exchange transaction.
Use the helpful calculators above to help understand if you can benefit from a 1031 exchange.