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RESOURCES - CALCULATORS

Deadline Calculator

Depreciation Calculator

Capital Gains Calculator

DAY 1

Closing of
relinquished
property

DAY 2-44

Identification Period:
Exchange researches
properties to acquire
as replacement
properties

DAY 45

Deadline to identify
candidate replacement
properties

DAY 46-179

Exchanger pursues
acquisition of
candidate
replacement
properties

DAY 180

Deadline to close on
the acquisition of one
or more of the
identified candidate
properties

Welcome to our 1031 Exchange Deadline Calculator! If you're considering a 10311
exchange to defer capital gains tax on the sale of your investment property, it's
important to be aware of the two distinct deadlines that drive the exchange
process: the 45-day identification period and the 180-day exchange period. 

To help you stay in compliance and ensure your exchange stays on track, simply
use our calculator below to count the days and determine your deadlines: 

Date of Sale

Enter the date on which you closed on the sale of your relinquished property.

Start Date

This is the first day of the month following the sale of your relinquished property.

45-Day Identification Deadline

This is the deadline by which you must identify potential replacement properties
for your exchange. It falls 45 calendar days after the start date.

180-Day Exchange Deadline

This is the deadline by which you must close on the purchase of your
replacement property. It falls 180 calendar days after the start date.

By using our 1031 Exchange Deadline Calculator, you can rest assured that you
won't miss any important deadlines and your exchange will stay on track.
However, it's important to note that this calculator provides an approximate
estimate, and you should always consult with a qualified intermediary and tax
professional for guidance specific to your situation.

Enter the closing date for the relinquished property:

Month

Day

Year

45 days Calculator
Identification Period (45 days) ends:

180 days Calculator
Exchange Period (180 days) ends:

The above identification and closing deadlines are estimates and do not take into consideration a taxpayer’s potential tax filing date restriction.

Welcome to our Depreciation Calculator! Depreciation is an essential aspect of
real estate investing, as it helps you lower your taxable income by accounting for
the gradual reduction in value of your property over time. To use our calculator,
simply fill out the fields below with the appropriate information: 

Original Purchase Price

Enter the date on which you closed on the sale of your relinquished property.

Value of Land

This is the first day of the month following the sale of your relinquished property.

Cost of Improvements

This is the deadline by which you must identify potential replacement properties
for your exchange. It falls 45 calendar days after the start date.

Based on this information, our calculator will provide you with two important figures: 

Annual Allowable Depreciation:

This is the amount you can deduct from your taxable income each year to
account for the gradual reduction in value of your property

Accumulated Depreciation:

This is the total amount of depreciation you have claimed for your property over
the course of ownership.

Please note that the IRS requires residential real estate to be depreciated over a 27.5
year period, and commercial real estate to be depreciated over a 39 year period.

It's important to keep track of your property's accumulated depreciation, as this will
affect your tax liability if and when you decide to sell the property. If you sell a
property for more than its depreciated value, you may be subject to depreciation
recapture tax.

In addition to depreciation, you may also be interested in using a 1031 exchange to
defer capital gains tax when you sell your property. Be sure to check out our Capital
Gains Calculator to see how this strategy could benefit you.

Thank you for using our Depreciation Calculator. If you have any questions or would
like more information about real estate investing and tax strategies, please consult
with a qualified tax professional or financial advisor.

THIS CALCULATOR IS FOR INFORMATIONAL PURPOSES ONLY. Please consult your
Tax Advisor for an accurate calculation based upon your specific situation.

The values listed below are provided as examples only. To receive a personalized
estimate, you will need to input your own values including: the initial purchase price of
your property, the value of the land (original purchase price minus any buildings/
structures and is not subject to depreciation), and any improvements to the property
that will be added to your cost basis.

Type of property

Years Property Has Been Owned (Years - Months)

Years

Months

Original Purchase Price of Property (cost basis) ($)

Land Value ($)

Improvement to Property ($)

Annual Depreciation ($)

Total Accumulated Depreciation ($)

Calculating capital gains on real estate can be a bit more complex than with
other assets, as the cost basis of the property includes not just the original
purchase price but also a variety of other factors. Here's an overview of how real
estate capital gains are typically calculated:

Determine the property's cost basis
The cost basis of the property includes the original purchase price, plus any
transaction fees, commissions, and other expenses incurred during the purchase
process. It can also include improvements made to the property over time, such
as renovations or additions, but not routine repairs and maintenance.

Adjust the cost basis
The cost basis of the property may need to be adjusted for factors such as
depreciation, casualty losses, or energy efficiency improvements. For example, if
the property has been depreciated over time, the adjusted cost basis would be
the original cost basis minus the accumulated depreciation.

Determine the sale price
The sale price is the amount the property is sold for, minus any transaction fees
and commissions.

Calculate the gain
The gain is the difference between the sale price and the adjusted cost basis of
the property.

Determine the tax rate
The tax rate on the gain depends on several factors, including how long the
property was held and the taxpayer's income level. If the property was held for
less than one year, the gain is subject to short-term capital gains tax, which is
taxed at the taxpayer's ordinary income tax rate. If the property was held for more
than one year, the gain is subject to long-term capital gains tax, which is typically
taxed at a lower rate.

Calculate the tax liability
The tax liability is the amount of tax owed on the gain. This can be calculated by
multiplying the gain by the applicable tax rate.

It's important to note that there may be other factors that can affect the
calculation of real estate capital gains, such as 1031 exchanges, which allow
taxpayers to defer taxes on the sale of investment properties by reinvesting the
proceeds into another property. As such, it's always advisable to consult with
a qualified tax professional or financial advisor for guidance on calculating and
minimizing your real estate capital gains tax liability.

The default values below illustrate the potential gains and their associated taxes,
fill in your own values to get your customized estimate. 

THIS CALCULATOR IS FOR INFORMATIONAL PURPOSES ONLY. Please consult
your Tax Advisor for an accurate calculation based upon your specific situation. 

Capital Gain Calculation

Original Price of Property (cost basis) ($)

Improvements to Property ($)

Selling Expenses ($)

Sale Price of Property ($)

Total Capital Gain ($)

Accumulated Depreciation
(Use the Depreciation Calculator)

Tax Calculation

Federal Capital Gains Tax*

%

Depreciation Recapture

%

State Capital Gains**

%

Net Investment Income Tax***

%

Total Tax Liability

Benefit of Exchanging vs Selling ($)
additional equity available to reinvest
through a 1031 exchange

*Federal Capital Gains Tax is between 15-20% depending upon annual household income.

**State Capital Gains Tax varies by state and income level, 13% is just an estimate
used as the default above.

*** Net Investment Income Tax of 3.8% is applied if annual investment income is
$200,000+ for a single taxpayer or $250,000+ for married taxpayers filing jointly.

CONSIDERING A 1031 EXCHANGE?

At 1031Portfolio, we offer our valued clients exclusive access to top-performing investment opportunities. We understand the importance of making informed investment decisions, and we are committed to helping you navigate the complex world of 1031 exchanges with ease. Our in-house brokerage expertise allows us to provide you with the highest level of service and support, ensuring that your investment goals are met.

We encourage you to contact us prior to taking any steps regarding your exchange, as our extensive network of resources, including qualified intermediaries, enables us to provide you with the most up-to-date and reliable information available. Partner with us at 1031Portfolio and let us help you achieve your investment objectives. 

“Unlock Passive Income Opportunities and Streamline Your 1031 Exchange with 1031Portfolio”

CONTACT US

CONTACT DETAILS

650.847.7222
contact@1031portfolio.com
581 University Avenue
Palo Alto, CA 94301

CONTACT DETAILS

650.847.7222

contact@1031portfolio.com

581 University Avenue

Palo Alto, CA 94301