1031 CORP. Keeping the exchange process simple for you.
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Exchange Tools

✴1031 Calculator

Enter the following information and our calculator will provide you an idea of how a 1031 exchange will work in your situation.  Note that you can see all of the calculations so you can better understand how the final figures were calculated.  In no way should the completion of this worksheet be construed as tax advice or used in place of competent tax advice.  Always consult a tax advisor to determine exactly how an exchange will work in your particular situation.
    Original purchase price of relinquished property
    All capital improvements made to the relinquished property
    All depreciation taken on the property thru the end of last year
    All prior deferred gain rolled into the relinquished property
    Current selling price of the relinquished property
    Mortgages/Equity Lines to be paid off on relinquished property
    All closing costs for relinquished property (commissions, 1031 fee, etc.)
    Purchase price of replacement property
    All closing costs associated with acquisition of replacement property
    New mortgages on replacement property
    Appropriate state tax rate
 

✴NET SELLING PRICE:
    Current selling price of relinquished property
  less All closing costs on the sale of relinquished property
  equal NET SELLING PRICE
 

✴ADJUSTED TAX BASIS OF RELINQUISHED PROPERTY:
    Original purchase price of relinquished property
  plus All capital improvements made to the relinquished property
  less All depreciation taken on the property thru the end of last year
  less All prior deferred gain rolled into the relinquished property
  equal ADJUSTED TAX BASIS
 

✴REALIZED GAIN:
    Net selling price
  less Adjusted tax basis
  equal REALIZED GAIN  (This is your actual gain on the sale.)
 

✴RECOGNIZED GAIN:
    Net selling price
  less Purchase price of replacement property
  plus All closing costs associated with acquisition of replacement property
  equal RECOGNIZED (TAXABLE) GAIN [Show 0 if negative number]
 

✴DEFERRED GAIN
    Realized gain
  less Recognized gain
  equal DEFERRED GAIN [Show 0 if negative number.]   (This is the gain deferred through the 1031 exchange.)

✴FEDERAL CAPITAL GAINS TAX THAT WOULD BE DUE WITHOUT AN EXCHANGE:
    Depreciation taken on property
  multiply by Multiply by the recapture tax rate of 25%
  total DEPRECIATION GAIN TAX LIABILITY
       
    Net Selling Price of Relinquished Property
  less Original purchase price of property
  plus Closing costs
  total Appreciation Gain
  multiply by Multiply by the maximum capital tax rate of 15% (assumes you are an individual taxpayer who held property at least 12 months).  Your tax advisor can help you determine your rate. 
  total CAPITAL GAINS TAX LIABILITY
       
    Depreciation Gain Tax Liability
  plus Capital Gain Tax Liability
  equal ESTIMATED FEDERAL TAX DUE WITHOUT AN EXCHANGE
 

✴STATE CAPITAL GAINS / INCOME TAX THAT WOULD BE DUE WITHOUT AN EXCHANGE*:

    Net Selling Price of Relinquished Property
  less Adjusted Tax Basis of relinquished property
  total Gain
  multiply by Multiply by the appropriate state tax rate.  Note each state is different.  Some states recognize 1031 exchange and you can defer the state gain also. However, some states including Pennsylvania, do NOT and state gain will be due regardless of whether or not you complete a 1031.
  equal ESTIMATED STATE CAPITAL GAINS / INCOME TAX LIABILITY
 

✴ADJUSTED TAX BASIS OF REPLACEMENT PROPERTY:

    Purchase price of replacement property
  plus Closing Costs
  less Deferred gain
  equal ADJUSTED TAX BASIS OF REPLACEMENT PROPERTY
 

✴EQUITY COMPUTATIONS:

    Net selling price of relinquished property
  less Mortgages/Equity Lines to be paid off on relinquished property
  equal EQUITY IN RELINQUISHED PROPERTY
       
    Purchase price of replacement property plus closing costs
  less New mortgages on replacement property
  equal EQUITY IN REPLACEMENT PROPERTY
       
    Equity in the replacement property
  less Equity in the relinquished property
  equal The equity in the replacement property must be equal or greater than the equity in the relinquished property or you will be taxed on the value of the trade down (dollar for dollar).

 

 

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1031 CORP. News

1031 CORP.
WORKING WITH
R.E.I. CONSULTANTS, LTD.
Expands Market Share in Mid-Atlantic Region

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