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1031 Exchange & Capital Gains Tax Calculator

If you’re selling an investment property and looking to upgrade or diversify your real estate portfolio, the 1031 Exchange is one of the smartest tools available to preserve your capital and compound your returns. Rather than handing over a chunk of your profit to the IRS, you can defer capital gains taxes and reinvest your full equity into your next deal.

This article walks you through a real-world example using our 1031 Exchange Calculator to estimate your:

  • Tax savings

  • Compounded wealth growth

  • Cash required at closing

  • Monthly housing payment on your next property

What Is a 1031 Exchange?

A 1031 Exchange allows investors to sell an investment property and defer paying capital gains tax, as long as the proceeds are used to purchase another qualifying property. It must be for investment or business use—not a primary residence—and the replacement property must be of equal or greater value.

When structured properly, this strategy helps real estate investors continue building wealth without losing equity to taxes.

Key IRS Forms and Requirements

To legally defer taxes with a 1031 exchange, make sure you work with a Qualified Intermediary and comply with all IRS requirements, including:

  • Identifying a replacement property within 45 days

     

  • Closing on the new property within 180 days

     

  • Filing IRS Form 8824 for the exchange

Next Steps: Get Preapproved for a 1031 Exchange Purchase

Knowing your numbers is the first step. Getting preapproved for financing is the next. We help real estate investors understand their options, line up strategic funding, and structure deals for long-term growth.

Use our calculator to estimate your cash to close and monthly payments, then schedule a consultation to get preapproved.

Start your next 1031 exchange with clarity, confidence, and expert support.

Request a 1031 Exchange Preapproval Today

Ready to Take Your First Step?

Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.

  • Takes just 5 minutes
  • Tailored results based on your answers
  • No credit check required
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Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.

  • Only 2 minutes to complete
  • Quick turnaround on pre-approval
  • No credit score impact
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Got a Few Questions First?

Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.

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Important Disclaimer

This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.

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