TaxPlanCalcTax year 2026

1031 Exchange Calculator

2026 rules

Estimate the tax a like-kind exchange defers and what's taxable now.

Your numbers

Result

Federal tax deferred by the exchange$91,596

  1. Realized gain$450,000
  2. Taxable boot$0
  3. Deferred gain$450,000
  4. Tax if you sold outright$91,596
  5. Tax due on the boot$0
  6. Tax deferred$91,596
  7. Basis of the replacement property$500,000

Identify replacement property within 45 days and close within 180 days, using a qualified intermediary. State tax is deferred too in most states.

How it works

In a 1031 exchange of investment real estate, the gain isn't taxed if you reinvest everything in like-kind property. Cash you keep, or a smaller mortgage on the new property, is boot and is taxable up to the gain.

The deferred gain reduces the new property's basis, so it's taxed later, unless your heirs inherit the property and get a stepped-up basis.

2026 figures: IRS Rev. Proc. 2025-32 (2026 inflation adjustments).

Questions

What are the deadlines?

Name the replacement property within 45 days of the sale and close within 180 days. The money must be held by a qualified intermediary.

Can I exchange into any property?

Any real property held for business or investment qualifies, for example a duplex for land. Personal residences and property outside the US don't.

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