Enter your property sale details below to estimate the capital gains tax a 1031 exchange may defer.
The tax rates are pre-filled. Depreciation Recapture is up to 25%. Federal Capital Gains is 20% — change it to 15% if that is your bracket. Add your state rate if your state taxes capital gains, and untick the 3.8% net investment income tax if it does not apply. Enter rates as whole numbers: 8 for 8%, 8.25 for 8¼%.
You do not need every exact figure to run the calculator. For most DST investors, Non-expensed Improvements will be zero. Use your best estimate for Depreciation Taken and Gain Deferred from Last Exchange if you do not have the exact figures. Your CPA should have the final amounts. Estimates will make the result less precise.
Estimating the §1031 tax deferral
Talk to your tax advisor before you sell the property. Even if you have little or no equity in the property, you may still have a significant tax liability. A low tax basis and depreciation recapture can result in a larger taxable gain than you might expect. NexTrend Securities is not a tax advisor and does not provide tax advice.
