PROPERTY OWNER TOOLS

Rental Property
1031 Exchange Calculator

Explore what a rental sale could mean for your next investment.

Sale equity & gainReinvestment targetsExchange dates

Enter your numbers to compare a sale with a simplified replacement purchase. Figures stay in this page and are not submitted or saved by the calculator. Printing includes the numbers you enter.

Planning estimates, not tax advice. This tool assumes qualifying U.S. investment real estate in a standard deferred exchange. Have a CPA and qualified intermediary review eligibility, costs, and timing before acting.

1

Property you’re selling

Debt repaid at sale; this is not your tax basis.
Include only costs your CPA or intermediary confirms reduce exchange proceeds, such as qualifying commissions and exchange fees. Do not include the mortgage payoff, loan fees, tax prorations, or reserve deposits. Other closing costs are outside this model.
Usually purchase cost plus capitalized acquisition costs. For a self-built rental, include land AND capitalized construction costs. Use your carried tax basis after an earlier exchange. Do not enter just the land price or mortgage balance.
Amounts not already included in original basis.
Depreciation allowed or allowable over ownership.

All amounts are in U.S. dollars. Enter 0 for amounts that do not apply. Other basis adjustments need professional review.

2

Try a replacement purchase

Optional. Change the purchase and financing to compare outcomes.

Assumes all available exchange equity is used up to the purchase cash needed; any excess comes back to you. New cash fills a funding gap. Excludes replacement closing costs, loan costs, other property, and special recapture rules.

3

Check exchange dates

Optional; include your extension, if applicable.

The 45-day and 180-day periods run together from the sale transfer date. These are calendar dates; this tool makes no holiday, weekend, or disaster-relief adjustments. Confirm the actual deadlines with your intermediary.

Before you plan an exchange

Arrange it before closing

A standard deferred exchange commonly uses a qualified intermediary. Taking actual or constructive receipt of the proceeds can disqualify the exchange.

Confirm what qualifies

Both properties must qualify as business or investment real estate. A personal home or property held primarily for sale does not qualify just because you buy another property.

Defer, rather than erase

Deferred gain generally reduces the replacement property’s tax basis. This calculator does not cover related-party exchanges, reverse or improvement exchanges, mixed personal use, or assets with special recapture.

How the estimates are calculated

Adjusted basis = original tax basis + later improvements − depreciation. Net value = sale price − qualifying expenses. Equity = net value − mortgage payoff. Realized gain or loss = net value − adjusted basis.

Replacement cash needed = replacement value − new debt. Cash above available equity is added by you; unused equity is returned. Potential boot combines cash returned with any debt reduction not offset by added cash. Recognized gain is limited to the smaller of positive realized gain and boot in this simplified model. Deferred gain or loss carries into replacement basis.

IRS references: Form 8824 instructions · Publication 544 · Like-kind exchange overview. Guidance reviewed October 29, 2026.