1031 Exchange

One read, on your own numbers: the gain and tax if you sell this property outright — the Section 1250 recapture and the capital-gains pieces — and how much of that tax a like-kind 1031 exchange lets you defer when you roll it into a replacement. Educational only — not tax advice.

The property you are selling (basis)

Purchase priceThe all-in price you paid for the property you now sell.Land allocation (%)Land’s share of the price — never depreciated. Your tax card or assessor split.Closing costs (%)Share of price paid at close; folds into basis.Rehab / improvementsOne-time capital improvement dollars; folds into basis.

Property class

Your asset class sets the recovery period behind the depreciation you have taken. Residential real property recovers over 27.5 years; commercial over 39. This is a standard you choose, not a figure we assume.

Placed in service

The month you placed the property in service. It prorates the first year of depreciation, so it feeds what you have accumulated by sale. Choose your own — nothing is assumed.

Month placed in service

The sale

Hold (years)How long you held it. Drives the depreciation you accumulated.Sale priceWhat the property you are relinquishing sells for.Cost of sale (%)Commissions and closing on the sale, as a share of the sale price.Recapture rate (%)The unrecaptured Section 1250 rate applied to what you wrote off. The federal standard is shown as an editable default — change it for your situation.

Your tax rates

Federal capital-gains rate (%)Your own federal long-term capital-gains rate. No figure is assumed — enter yours.State rate (%)Your own state rate on the gain. Enter 0 if your state has none.

The exchange

Boot receivedCash or debt relief you take out instead of reinvesting. It is recognized up to your gain; leave blank for a fully deferred exchange.Replacement property priceWhat you pay for the replacement. Used to show your carried-over basis in it.Relinquished sale dateThe day your sale closes. Used to show your identification and exchange deadlines.

Enter the property’s price, your land allocation, the month you placed it in service, how long you held it, and the sale price to see your gain and the tax a simple sale would owe. Add your capital-gains and state rates to split the tax, and a boot amount to see what an exchange defers.