Planning Tool

1031 Exchange Tax Savings

Compare an estimated tax bill if you sell investment property today versus deferring gain in a like-kind exchange. Defaults reflect common federal long-term rates plus California.

Estimated sale price

Original cost basis

Depreciation taken

Federal LTCG %

NIIT %

California rate %

Estimated comparison

Taxable gain$2,100,000

Tax if sold today$799,100

Tax in a 1031$0 deferred

Est. tax deferred$799,100

Includes unrecaptured §1250 at 25% federal, long-term capital gain, NIIT, and California on the gain.

Illustrative only and not tax advice. A 1031 exchange has strict timing rules and typically requires a qualified intermediary. Selling costs, boot, and your actual rates can change the result. Coordinate with your CPA before acting.

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