Section 1031 Exchange & Capital Gains Tax Calculator
Calculate capital gains tax deferral, Section 1250 depreciation recapture, and 45-day/180-day deadlines under IRC Section 1031 for 2026-2027.
What Are Your Section 1031 Exchange Parameters?
Model real estate capital gains deferral, Section 1250 depreciation recapture, and multi-state tax drag.
What Is Your Projected Section 1031 Tax Deferral?
Total Tax Liability Deferred
$706,350
Tax Drag Avoided: 28.25% of Gross Sale
Total Realized Gain
$1,850,000
New Replacement Basis
$650,000
Statutory Treasury Deadlines
45-Day Identification Window: Must identify replacement properties in writing by midnight of calendar day 45.
180-Day Exchange Period: Must complete purchase and take title by midnight of calendar day 180.
180-Day Exchange Period: Must complete purchase and take title by midnight of calendar day 180.
Named Decision Framework
What Is The 45-Day Identification and Like-Kind Exchange Protocol?
Objective: Protecting real estate gains through like-kind exchange tax deferrals, Section 1250 recapture management, and statutory identification timelines.
- Step 1: Quantify Gross Tax Liability Drag: Compute the unmitigated federal capital gains tax (20%), Section 1250 depreciation recapture (25%), NIIT (3.8%), and state income tax liabilities.
- Step 2: Comply With Statutory Timing Deadlines: Secure a Qualified Intermediary (QI) before closing relinquished title, satisfy the 45-day replacement property identification window, and close within 180 calendar days.
- Step 3: Eliminate Boot and Track State Clawback: Reinvest 100% of net sale proceeds and equal or exceed relinquished debt to prevent taxable boot, while filing annual state clawback disclosures (such as California FTB Form 3840) where required.
How Does the Interstate Section 1031 Arbitrage Matrix Compare Across States?
Empirical comparison of capital gains deferral and state tax drag across primary commercial real estate migration corridors.
| Relinquished State | Replacement State | State Tax Drag Avoided | Total Tax Deferred | Effective Rate | Clawback Compliance |
|---|---|---|---|---|---|
| California (13.3%) | Texas (0.0%) | $246,050 | $706,350 | 28.25% | FTB Form 3840 Annual Filing |
| California (13.3%) | Florida (0.0%) | $246,050 | $706,350 | 28.25% | FTB Form 3840 Annual Filing |
| New York (10.9%) | Florida (0.0%) | $201,650 | $661,950 | 26.48% | IT-205 Allocation |
| New Jersey (10.75%) | Texas (0.0%) | $198,875 | $659,175 | 26.37% | NJ-1040 Deferral |
| Massachusetts (9.0%) | New Hampshire (0.0%) | $166,500 | $626,800 | 25.07% | Schedule D Annual Tracking |
| Oregon (9.9%) | Washington (0.0%) | $183,150 | $643,450 | 25.74% | Form 1031 Annual Report |
Which Qualified Intermediary and Execution Partners Support Section 1031?
50-State & DC Commercial Real Estate Directory
Where Can You Access State Section 1031 Exchange Models Across All 51 Jurisdictions?
Select a state to model commercial real estate Section 1031 capital gains deferral, Section 1250 depreciation recapture, and interstate tax clawback rules.
AL Commercial Exchange
Alabama 1031 Calculator
Tax Drag: 5.0% State Tax • Calculate Deferral →
AK Commercial Exchange
Alaska 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
AZ Commercial Exchange
Arizona 1031 Calculator
Tax Drag: 2.5% State Tax • Calculate Deferral →
AR Commercial Exchange
Arkansas 1031 Calculator
Tax Drag: 3.9% State Tax • Calculate Deferral →
CA Commercial Exchange
California 1031 Calculator
Tax Drag: 13.3% State Tax • Calculate Deferral →
CO Commercial Exchange
Colorado 1031 Calculator
Tax Drag: 4.4% State Tax • Calculate Deferral →
CT Commercial Exchange
Connecticut 1031 Calculator
Tax Drag: 6.99% State Tax • Calculate Deferral →
DE Commercial Exchange
Delaware 1031 Calculator
Tax Drag: 6.6% State Tax • Calculate Deferral →
DC Commercial Exchange
District of Columbia 1031 Calculator
Tax Drag: 10.75% State Tax • Calculate Deferral →
FL Commercial Exchange
Florida 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
GA Commercial Exchange
Georgia 1031 Calculator
Tax Drag: 5.39% State Tax • Calculate Deferral →
HI Commercial Exchange
Hawaii 1031 Calculator
Tax Drag: 11.0% State Tax • Calculate Deferral →
ID Commercial Exchange
Idaho 1031 Calculator
Tax Drag: 5.7% State Tax • Calculate Deferral →
IL Commercial Exchange
Illinois 1031 Calculator
Tax Drag: 4.95% State Tax • Calculate Deferral →
IN Commercial Exchange
Indiana 1031 Calculator
Tax Drag: 3.05% State Tax • Calculate Deferral →
IA Commercial Exchange
Iowa 1031 Calculator
Tax Drag: 3.8% State Tax • Calculate Deferral →
KS Commercial Exchange
Kansas 1031 Calculator
Tax Drag: 5.58% State Tax • Calculate Deferral →
KY Commercial Exchange
Kentucky 1031 Calculator
Tax Drag: 4.0% State Tax • Calculate Deferral →
LA Commercial Exchange
Louisiana 1031 Calculator
Tax Drag: 4.25% State Tax • Calculate Deferral →
ME Commercial Exchange
Maine 1031 Calculator
Tax Drag: 7.15% State Tax • Calculate Deferral →
MD Commercial Exchange
Maryland 1031 Calculator
Tax Drag: 5.75% State Tax • Calculate Deferral →
MA Commercial Exchange
Massachusetts 1031 Calculator
Tax Drag: 9.0% State Tax • Calculate Deferral →
MI Commercial Exchange
Michigan 1031 Calculator
Tax Drag: 4.25% State Tax • Calculate Deferral →
MN Commercial Exchange
Minnesota 1031 Calculator
Tax Drag: 9.85% State Tax • Calculate Deferral →
MS Commercial Exchange
Mississippi 1031 Calculator
Tax Drag: 4.7% State Tax • Calculate Deferral →
MO Commercial Exchange
Missouri 1031 Calculator
Tax Drag: 4.7% State Tax • Calculate Deferral →
MT Commercial Exchange
Montana 1031 Calculator
Tax Drag: 5.9% State Tax • Calculate Deferral →
NE Commercial Exchange
Nebraska 1031 Calculator
Tax Drag: 5.2% State Tax • Calculate Deferral →
NV Commercial Exchange
Nevada 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
NH Commercial Exchange
New Hampshire 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
NJ Commercial Exchange
New Jersey 1031 Calculator
Tax Drag: 10.75% State Tax • Calculate Deferral →
NM Commercial Exchange
New Mexico 1031 Calculator
Tax Drag: 5.9% State Tax • Calculate Deferral →
NY Commercial Exchange
New York 1031 Calculator
Tax Drag: 10.9% State Tax • Calculate Deferral →
NC Commercial Exchange
North Carolina 1031 Calculator
Tax Drag: 4.5% State Tax • Calculate Deferral →
ND Commercial Exchange
North Dakota 1031 Calculator
Tax Drag: 2.5% State Tax • Calculate Deferral →
OH Commercial Exchange
Ohio 1031 Calculator
Tax Drag: 3.5% State Tax • Calculate Deferral →
OK Commercial Exchange
Oklahoma 1031 Calculator
Tax Drag: 4.75% State Tax • Calculate Deferral →
OR Commercial Exchange
Oregon 1031 Calculator
Tax Drag: 9.9% State Tax • Calculate Deferral →
PA Commercial Exchange
Pennsylvania 1031 Calculator
Tax Drag: 3.07% State Tax • Calculate Deferral →
RI Commercial Exchange
Rhode Island 1031 Calculator
Tax Drag: 5.99% State Tax • Calculate Deferral →
SC Commercial Exchange
South Carolina 1031 Calculator
Tax Drag: 6.2% State Tax • Calculate Deferral →
SD Commercial Exchange
South Dakota 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
TN Commercial Exchange
Tennessee 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
TX Commercial Exchange
Texas 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
UT Commercial Exchange
Utah 1031 Calculator
Tax Drag: 4.55% State Tax • Calculate Deferral →
VT Commercial Exchange
Vermont 1031 Calculator
Tax Drag: 8.75% State Tax • Calculate Deferral →
VA Commercial Exchange
Virginia 1031 Calculator
Tax Drag: 5.75% State Tax • Calculate Deferral →
WA Commercial Exchange
Washington 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
WV Commercial Exchange
West Virginia 1031 Calculator
Tax Drag: 5.12% State Tax • Calculate Deferral →
WI Commercial Exchange
Wisconsin 1031 Calculator
Tax Drag: 7.65% State Tax • Calculate Deferral →
WY Commercial Exchange
Wyoming 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →