FAQs  |  1031 Dictionary  |  Calculator

These calculations show the approximate capital gain taxes deferred by performing an IRC § 1031 exchange. Please enter your figures in the fields provided (enter your numbers with no commas or dollar signs, for example: 300000) and click on the "Calculate" button in each area to perform the calculations. STEP 1. Calculate Net Adjusted Basis $ original purchase price +$ improvements -$ depreciation   EQUALS NET ADJUSTED BASIS STEP 2. Calculate Capital Gain Sales Price of Property $ sales price -$ net adjusted basis -$ costs of sale (commissions, fees, etc.)   EQUALS CAPITAL GAIN STEP 3. Calculate Capital Gain Tax Due $ recaptured depreciation (25%) +$ federal capital gain tax (15%)  % your state capital gain tax rate +$ state capital gain tax   EQUALS TOTAL TAXES DUE STEP 4. Calculate Equity $ sales price -$ costs of sale -$ loan balances   EQUALS GROSS EQUITY -$ capital gain taxes due   EQUALS AFTER-TAX EQUITY Only your tax preparer can give you an EXACT CALCULATION. All others will be estimates.