Estimate tax deferral savings and generate your IRS 45-day / 180-day timeline.
Realized Gain
$260,000
Net Cash Proceeds
$350,000
Cap Gains Tax Deferral
$30,000
Total Tax Deferred
$45,000
To achieve full tax deferral and avoid paying capital gains or depreciation recapture taxes, your replacement properties must meet both criteria below:
1. Equal or Greater Purchase Price
$600,000+
Replacement value must equal or exceed relinquished sale price.
2. Full Reinvestment of Equity
$350,000+
All net cash proceeds must be held by the Qualified Intermediary and spent.
Day 0 — Property Closed
2026-07-17
Property sale closes. Funds must go directly to a Qualified Intermediary (QI).
Day 45 — Identification Deadline
Mon, Aug 31, 2026
Must identify target replacement properties in writing to the QI. Hard deadline.
Day 180 — Completion Deadline
Wed, Jan 13, 2027
Purchase of replacement property must be closed and completed. Hard deadline.
Named after Section 1031 of the Internal Revenue Code, a 1031 Exchange allows real estate investors to defer paying capital gains and depreciation recapture taxes upon selling an investment property by reinvesting the proceeds into another "like-kind" property.