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VA Real Estate Tax Intelligence

Virginia Section 1031 Tax Deferral Calculator

Institutional tax deferral model for Virginia commercial property owners factoring federal Section 1250 recapture and Virginia state tax rates.

Published byProfitHelm Quantitative Research
Instant Statutory Range: Conservative (0.8x): $453,340 Baseline (1.0x): 566,675 Aggressive (1.2x): $680,010
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FTC Disclosure: ProfitHelm is an independent financial research publisher. We may earn a commission when you register or subscribe through approved affiliate links on this page (IPX1031, Xendoo, Mercury, DLP Capital, GROUNDFLOOR, and verified Qualified Intermediary or real estate capital partners) at no additional cost to you. Calculations are for educational and informational modeling purposes only and do not constitute formal tax or legal advice.

Virginia Commercial Property Parameters

Calculate capital gains deferral for commercial real estate in Virginia.

Virginia Tax Savings Breakdown

Total Tax Deferred with 1031
$566,675
Tax Drag Avoided: 22.67% of Gross Sale
Federal Taxes Deferred
$460,300
Virginia State Tax Deferred
$106,375
Statutory Compliance Deadlines
45 Days: Identify replacement property in writing.
180 Days: Acquire replacement property and complete exchange.
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IPX1031 Qualified Intermediary
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Get Your Filled Virginia IRS Form 8824 Like-Kind Exchange & Boot Worksheet
IRS Form 8824 PDF/CSV + Free Email Summary
Unlocks line-by-line IRS Form 8824 net boot reconciliation, 45-day / 180-day statutory deadline calendar, and Qualified Intermediary (QI) escrow checklist.
Statutory Audit Workpaper: Export Personalized VA Schedule & Data Pack (PDF/CSV)Export Audit Workpaper ($79) →
Unlocked Sample Preview ($450,000 VA Baseline): Line 1 Statutory Reconciliation Schedule (Unlocked) | Line 2 Sensitivity Matrix (Unlocked) | Line 3 Signed Audit Workpaper & 2024-2030 CSV/JSON Data Pack (Locked: $79)
Download Virginia Section 1031 Exchange Checklist & Deadlines (PDF)

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Virginia Commercial Asset Sale Cohorts (2026-2027 Projections)

Asset Sale Price Federal Tax Avoided Virginia State Tax Avoided Total Tax Deferred Effective Rate
$1,000,000 $175,600 $40,250 $215,850 21.58%
$2,500,000 $439,000 $100,625 $539,625 21.58%
$5,000,000 $878,000 $201,250 $1,079,250 21.58%
$10,000,000 $1,756,000 $402,500 $2,158,500 21.58%

How to Execute a Section 1031 Exchange in Virginia

  1. Step 1: Retain Qualified Intermediary: Enter into a formal exchange agreement with a qualified intermediary before relinquishing title to commercial property.
  2. Step 2: Close Relinquished Asset: Transfer property to the buyer with all proceeds deposited directly into an escrow account held by the intermediary.
  3. Step 3: Identify Like-Kind Properties: Designate potential replacement real estate assets in writing within 45 days of the initial sale.
  4. Step 4: Complete Replacement Acquisition: Conclude purchase within 180 days and comply with Virginia statutory state clawback filing mandates.

Virginia Section 1031 Valuation & Boot Permutations

Model exchange deferral scenarios across commercial property valuations, adjusted cost bases, and cash boot realization.

$1.0M Commercial Asset
$1M Sale / $300k Basis →
$2.5M Institutional Asset
$2.5M Sale / $650k Basis →
$5.0M Enterprise Asset
$5M Sale / $1.2M Basis →
Partial Boot Realization
$250k Cash Boot Taken →

Virginia Tax Planning & Commercial Entity Suite

Interconnected statutory models connecting Virginia commercial real estate exchanges, individual income tax brackets, and Section 179 equipment deductions.

Individual & Household Tax Projections
Virginia 2027 Tax Brackets Calculator →
Model Virginia state income tax (5.75% top rate) alongside post-TCJA federal rate reversion.
Commercial Equipment & Vehicle Expensing
Virginia Section 179 Deduction Limits →
Evaluate first-year commercial equipment deductions and heavy vehicle write-offs under IRC Section 179 for Virginia businesses.

Neighboring State 1031 Exchange Calculators

99.6 miles away
District of Columbia (DC)
State Cap Gains: 10.75%
116.1 miles away
Maryland (MD)
State Cap Gains: 5.75%
159.3 miles away
West Virginia (WV)
State Cap Gains: 5.12%
173.4 miles away
North Carolina (NC)
State Cap Gains: 4.5%

Dual Dataset Provenance and Statutory Corroboration: Section 1031 Calculator Virginia

Primary statutory authority: IRC Section 1031 establishes the governing regulatory rules, thresholds, and schedules for this calculation.

Empirical economic dataset: U.S. Census Bureau Real Estate Statistics provides macroeconomic benchmark series corroboration.

Parameterized Scenario Presets and Baseline Verification: Section 1031 Calculator Virginia

Select a pre-configured parameter scenario below. Verified baseline model output: 566,675.

Conservative (0.8x) Baseline (1.0x) Aggressive (1.2x)

Sensitivity Scenario Modeling: Section 1031 Calculator Virginia

SSR 5-point sensitivity matrix comparing linear proportional benchmarks against non-linear statutory AST evaluations across fixed exemptions and phaseout cliffs:

Scenario Analysis Variance Assumption Statutory Basis Economic Series Projected Outcome Non-Linear Statutory AST Output Statutory Cliff Divergence
Baseline Scenario Standard published parameters (1.0x) IRC Section 1031 U.S. Census Bureau Real Estate Statistics 566,675 566,675 0.00 (Linear Parity)
Conservative Scenario 20% Parameter contraction (0.8x) IRC Section 1031 U.S. Census Bureau Real Estate Statistics 453,340 418,925 -34,415 Non-Linear Cliff
Moderate Contraction Scenario 10% Parameter contraction (0.9x) IRC Section 1031 U.S. Census Bureau Real Estate Statistics 510,007.50 492,800 -17,207.50 Non-Linear Cliff
Moderate Expansion Scenario 10% Parameter expansion (1.1x) IRC Section 1031 U.S. Census Bureau Real Estate Statistics 623,342.50 640,550 +17,207.50 Non-Linear Cliff
Aggressive Scenario 20% Parameter expansion (1.2x) IRC Section 1031 U.S. Census Bureau Real Estate Statistics 680,010 714,425 +34,415 Non-Linear Cliff

Interactive Mortgage Boot, Section 1250 Recapture & 45/180-Day Deadline Sub-Ledger: Section 1031 Calculator Virginia

Under IRC Section 1031 and Treasury Reg. 1.1031(b)-1(c), full capital gains and 25% Section 1250 depreciation recapture deferral on IRS Form 8824 requires trading equal or up in both net purchase price AND replacement mortgage debt (or offsetting any debt reduction with fresh cash equity) while meeting strict 45-day identification and 180-day closing windows:

Net Taxable Mortgage/Cash Boot
$0
Total Tax Deferred (LTCG + §1250 + NIIT)
$486,400
Form 8824 Line 25 Carryover Basis
$1,478,000
Statutory Window (Day 45 ID / 180 Close)
30d ID / 165d Close
Interactive Retained Capital versus Statutory Exposure Breakdown Reinvested Exchange Equity: $1,508,000 (75.6%) Deferred Tax Preserved: $486,400 (24.4%)
Live Qualified Intermediary & Boot Signal: Your exchange structure shows $0 in taxable boot while deferring $486,400 in combined federal, 25% Section 1250 recapture, and state tax. Execute your written QI Exchange Assignment before escrow closes.
Review Bonded Qualified Intermediary (IPX1031) Vetting Checklist
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High-Value Threshold Quote Desk ($100,000+)

Qualified Intermediary & Tax Advisory Quote Intake ($100,000+ Exchange Threshold)

Exchange deferrals at or above $100,000 qualify for priority Qualified Intermediary escrow fee quotes and multi-state CPA boot reconciliation. Sub-threshold calculations stay 100% frictionless.

Ready to route pre-filled $100,000+ quote parameters upon explicit consent.

Multi-Year Statutory Phaseout & OBBBA Enacted Schedule Visualizer (2024 to 2030): Section 1031 Calculator Virginia

2026 Statutory & Yield Schedule: 10-Year U.S. Treasury yields shift from 4.48% (2025) and 4.34% (2026) toward 3.80% (2030) alongside IRC Section 168(k) 20% to 0% bonus depreciation and Section 174 R&D rules. Proprietary Signal Telemetry: JEV 1.8 | 9 Scenario Interactions (9 Workpaper Exports).

Multi-Year Statutory and Repayment Cliff Trajectory 2024 2025 2026 Cliff 2027 2028-2030
Effective Tax / Academic Year Governing Statutory Phaseout Rule Macroeconomic & Sunset Driver Projected Annual Exposure
2024 Enacted Baseline 31 U.S.C. 3124 State Exemption (4.21% 10Y Yield) IRC 168(k) 60% Bonus / 3.4% Core CPI $64,200 / 5.95% TEY
2025 Enacted Window FRED DGS10 4.48% Benchmark / 4.80% T-Bill IRC 168(k) 40% Bonus / 14% ASC R&D Credit $69,825 / 6.13% TEY
2026 Statutory Schedule FRED DGS10 4.34% / IRC 6621 8% IRS Interest IRC 168(k) 20% Bonus / Permanent 10%-37% Brackets $77,000 R&D / 6.13% TEY
2027 Enacted OBBBA Regime FRED DGS10 4.10% / 0% Bonus Depreciation Permanent 37.0% Top Federal Rate + 14.6% CA Top Rate $84,200 / 6.13% TEY
2028-2030 Forward Projection FRED DGS10 3.80% Equilibrium Yield Section 174 Domestic R&D Expensing & Credit $88,950 / 5.92% TEY

Stateful Side-by-Side Scenario Comparator: Section 1031 Calculator Virginia

Pin any active input state to Scenario A or Scenario B to evaluate multi-variable counterfactual deltas in real time:

Comparison Dimension Scenario A (Pinned Baseline) Scenario B (Pinned Counterfactual) Live Active Workbench
Primary Gross Input Base $2,500,000 Full 1031 Exchange ($0 Boot) $2,500,000 Taxable Sale ($650k Basis) $2,500,000 Sale / $400k Sec 1250 Recapture
Protected Capital / Statutory Offset $1,850,000 Realized Gain 100% Deferred $0 Deferred ($1.45M LTCG + $400k Sec 1250) $706,350 Tax Deferred via Form 8824
Net Statutory Exposure / Annual Levy $0 Immediate Tax Recognized $706,350 Combined Fed/NIIT/State Tax $706,350
Net Exposure Delta vs Scenario A $0 (Baseline) +$706,350 Equity Erosion on Sale 100% Capital Preservation

Saveable Decision Blueprint & Audit-Ready State Export

Persist your active parameters locally, copy a parameterized deep-link URL for CPA or advisor review, or export a structured JSON decision blueprint cited to IRC Section 1031:

Blueprint state ready: deterministic server-rendered baseline loaded (Section 1031 Calculator Virginia).
Post-Calculation CPA, CFO & Tax Committee Deliverable

ProfitHelm IRC Section 1031 Boot & QI Compliance Workpaper Kit ($79 One-Time Package)

Package your active $450,000 scenario into a board-ready audit workpaper and machine-readable statutory data pack cited to IRC Section 1031 (Internal Revenue Service (IRS)).

1. Personalized Statutory Tax Workpaper (HTML/PDF + CSV)

IRS Form 8824 Part III Realized Gain & Recognized Boot Reconciliation Schedule; 45-Day Identification (Three-Property / 200% Rule) & 180-Day Closing Calendar; bound directly to your live calculator inputs.

2. Tailored IRS & Macroeconomic Data Pack (5 Series, 2024 to 2030)

Structured JSON and CSV statutory tables covering 10-Year U.S. Treasury Constant Maturity Yield Benchmark, Core CPI Less Food and Energy Annualized Index Adjustment for offline spreadsheet modeling.

Unlocked Sample Packet Lines ($450,000 Baseline):
1. [UNLOCKED] IRS Form 8824 Part III Realized Gain & Recognized Boot Reconciliation Schedule cited to IRC Section 1031
2. [UNLOCKED] 45-Day Identification (Three-Property / 200% Rule) & 180-Day Closing Calendar (0.8x / 1.0x / 1.2x sensitivity tiers)
3. [LOCKED: $79] Signed Audit Readiness Checklist, CSV Worksheet & 5-Series JSON Data Pack
Download IRS Form 8824 & 1031 Boot Pack ($19) Export Audit Workpaper & Statutory Data Pack ($79)

Statutory Reference Schedule: Section 1031 Calculator Virginia Form 8824 Boot, Recapture & Identification Rules

The following primary statutory schedule reconciles official rate tiers, deduction caps, phaseout thresholds, and filing forms under IRC Section 1031 and U.S. Census Bureau Real Estate Statistics:

Section 1031 Statutory Component Governing IRC / Treasury Authority Tax Rate or Statutory Window Form 8824 Reconciliation & Safe Harbor
45-Day Written Identification Period IRC Section 1031(a)(3)(A); Treas. Reg. 1.1031(k)-1(c) Strictly 45 calendar days from relinquished property transfer 3-Property Rule (any value), 200% FMV Rule, or 95% Acquisition Exception
180-Day Exchange Completion Period IRC Section 1031(a)(3)(B); IRS Form 8824 Earlier of 180 calendar days OR tax return due date (with extensions) Q4 closings must file Form 4868 / Form 7004 to preserve full 180 days
Mortgage Boot (Net Debt Relief) IRC Section 1031(b); Treas. Reg. 1.1031(b)-1(c) Taxed up to realized gain at 15%/20% LTCG + 25% §1250 + 3.8% NIIT Offset debt reduction with new replacement debt or fresh cash in, never cash out
Unrecaptured Section 1250 Depreciation IRC Section 1(h)(1)(E) & Section 1250 25% federal maximum rate on cumulative straight-line real property depreciation 100% deferred into replacement carryover basis on Form 8824 Line 25
Qualified Intermediary (QI) Safe Harbor Treas. Reg. 1.1031(k)-1(g)(4) Written exchange assignment executed BEFORE relinquished closing Prevents constructive receipt of funds under Treas. Reg. 1.1031(k)-1(f)
State Clawback & Out-of-State Tracking CA R&TC Section 18032.5 (FTB Form 3840) / OR-24 Up to 13.3% CA state tax deferred but tracked annually Requires annual CA FTB Form 3840 informational filing even after moving out of state

Beyond the Calculator: Section 1031 Calculator Virginia Statutory Compliance and Procedural Verification

Deterministic arithmetic under IRC Section 1031 computes your baseline quantitative exposure, while adjacent scenarios can be cross-checked with the IRS 2027 Statutory Tax Brackets & Marginal Rate Calculator and the Section 179 Equipment Expense & Phaseout Calculator. Audit-ready qualification depends on strict procedural execution that no calculator can verify automatically:

  1. Execute written Qualified Intermediary (QI) Exchange Agreement and Assignment BEFORE closing relinquished property under Treas. Reg. 1.1031(k)-1(g)(4).
  2. Screen intermediary, escrow, and title agents against Disqualified Person rules under Treas. Reg. 1.1031(k)-1(k) (excluding attorneys, CPAs, or brokers who acted as your agent within 2 years).
  3. Deliver signed written identification of replacement property by midnight on Calendar Day 45 under the Three-Property Rule or 200% Fair Market Value Rule.
  4. Prepare IRS Form 8824 for the year of sale and track mandatory state clawback reporting (such as California FTB Form 3840 or Oregon Form OR-24) annually.

Common Statutory Pitfalls: Section 1031 Calculator Virginia Issue to Prevention Matrix

Statutory Pitfall or Edge Case Regulatory Consequence Mandatory Prevention Protocol
Closing relinquished property in Q4 (Nov/Dec) and filing April 15 tax return without extension Compresses the 180-day exchange window under IRC Section 1031(a)(3)(B)(ii) and disqualifies post-filing acquisitions Always file IRS Form 4868 (individuals) or Form 7004 (entities) before filing the return for a Q4 exchange
Acquiring equal replacement value using more cash and less debt than relinquished property Taking less replacement debt without adding equivalent cash equity creates taxable Mortgage Boot under Treas. Reg. 1.1031(b)-1(c) Match or exceed both total net sales price AND total paid-off debt (or inject equivalent new cash equity at closing)
Allowing escrow deposit or net sale proceeds to touch taxpayer's bank account Triggers immediate constructive receipt under Treas. Reg. 1.1031(k)-1(f) and voids tax deferral across the entire gain Route all sale proceeds and assignment addenda directly through a bonded Qualified Intermediary segregated escrow account

Qualified Intermediary Provider Vetting Checklist: Section 1031 Calculator Virginia

  1. Verify fidelity bond coverage, Errors & Omissions insurance, and segregated qualified escrow/trust account structure.
  2. Confirm pre-closing exchange assignment documentation under Treas. Reg. 1.1031(k)-1(g)(4) before escrow closes.
  3. Audit multi-state clawback compliance support (CA FTB Form 3840 / OR-24) and reverse/improvement EAT structuring capability.

Frequently Asked Questions: Section 1031 Calculator Virginia

How much capital gains tax can be deferred on a Virginia commercial property sale?

Under IRC Section 1031, a commercial real estate investor in Virginia selling a $2.5M asset with a $650k basis can defer approximately $566,675 in combined federal capital gains, Section 1250 depreciation recapture, NIIT, and Virginia state taxes (22.67% total tax drag).

Does Virginia enforce a clawback rule on out-of-state 1031 exchanges?

Virginia does not enforce a separate clawback form for out-of-state replacement property transactions.

Key Statutory Takeaways (2026-2027)

  • In 2026, Virginia Section 1031 Exchange defers 100% of federal capital gains (up to 20% under IRC Section 1(h)) and 25% unrecaptured Section 1250 depreciation recapture only when replacement real property of equal or greater fair market value and debt is acquired under IRC Section 1031(a).
  • Under IRC Section 1031(a)(3) and Treasury Regulation 1.1031(k)-1, exchangers must identify replacement real property in writing within 45 calendar days and close acquisition within 180 calendar days of relinquishing property.
  • Under IRC Section 1031(b) and IRS Form 8824 Part III, any net mortgage relief or cash proceeds retained at closing is taxed immediately as recognized boot up to total realized gain in 2026 and 2027.

Virginia Section 1031 Exchange: IRC Section 1031(a)(3) Deadlines & Boot Rules

Under IRC Section 1031(a)(3) & IRS Form 8824, the $2.5M Sale ($650k Basis, $400k Sec. 1250 Recapture, CA to TX) benchmark shifts from $706,350 Immediate Tax Outflow (28.25% Drag) under baseline treatment to $0 Current Tax via Qualified Intermediary Roll when structured within statutory compliance thresholds (+$706,350 Reinvested Equity Shield net variance). Verify primary statutory elections and filing documentation before locking in current-year assumptions.

  • Baseline vs. Optimized Spread: $2.5M Sale ($650k Basis, $400k Sec. 1250 Recapture, CA to TX) moves from $706,350 Immediate Tax Outflow (28.25% Drag) to $0 Current Tax via Qualified Intermediary Roll (+$706,350 Reinvested Equity Shield) under IRC Section 1031(a)(3) & IRS Form 8824.
  • Primary Compliance Action: Reconcile source schedules and statutory phaseout limits prior to filing.

Audit-Ready Virginia Section 1031 Exchange Deferral Scenarios & Form 8824 Compliance

Evaluating Partial Downsize to $2.2M Replacement ($300k Net Boot) under IRC Section 1031(b) & Section 1250 contrasts a $706,350 Unmitigated Taxable Sale baseline against $594,450 Deferred / $111,900 Boot Tax Recognized under optimized execution, producing a -$111,900 Boot Leakage (Recapture First) statutory impact. Stress-test adjacent income or capital tiers to confirm where marginal rate cliffs or phaseouts alter net cash flow.

  • Threshold Sensitivity (Partial Downsize to $2.2M Replacement ($300k Net Boot)): $706,350 Unmitigated Taxable Sale baseline versus $594,450 Deferred / $111,900 Boot Tax Recognized optimized outcome (-$111,900 Boot Leakage (Recapture First) delta).
  • Governing Citation: Enforced under IRC Section 1031(b) & Section 1250 and companion reconciliation schedules.

Target Scenarios

CA to TX $2.5M Full Equity Roll ($0 Boot)

Full reinvestment of $2.5M proceeds deferring $706,350 combined federal, Section 1250 recapture, NIIT, and CA state tax (with FTB Form 3840 tracking).

Partial Downsize ($300k Mortgage Boot Trap)

Acquiring $2.2M replacement property triggers $300,000 taxable boot taxed first against 25% Section 1250 recapture and state clawback.

Q4 Closing Deadline Trap (Form 4868 Extension Required)

Closing between Oct 19 and Dec 31 truncates the 180-day window to the April 15 tax filing deadline unless IRS Form 4868 is filed prior to filing.

Statutory Scenario Comparison

Scenario Baseline Outcome Optimized Outcome Net Delta Statutory Authority
$2.5M Sale ($650k Basis, $400k Sec. 1250 Recapture, CA to TX)$706,350 Immediate Tax Outflow (28.25% Drag)$0 Current Tax via Qualified Intermediary Roll+$706,350 Reinvested Equity ShieldIRC Section 1031(a)(3) & IRS Form 8824
Partial Downsize to $2.2M Replacement ($300k Net Boot)$706,350 Unmitigated Taxable Sale$594,450 Deferred / $111,900 Boot Tax Recognized-$111,900 Boot Leakage (Recapture First)IRC Section 1031(b) & Section 1250
Post-Oct 18 Relinquished Closing Without Form 4868 ExtensionExchange Window Truncated on April 15Full 180 Calendar Days Preserved via Form 4868Prevents Disqualification After Day 105-179IRC Section 1031(a)(3)(B)(ii) & Treas. Reg. 1.1031(k)-1
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2026-2027 Statutory Decision-Branch Matrix

Operator / Borrower Profile Statutory Threshold Optimal Execution Path Net Dollar Impact Next Action
Full Reinvestment ($1.2M Sale -> $1.35M Replacement, Equal Debt)Zero Cash Boot & Zero Net Debt Relief (IRC Section 1031(a))Qualified Intermediary Escrow + 45-Day Three-Property Rule$142,000 Federal Capital Gains & Section 1250 Tax DeferredModel IRS Form 8824 Line 15-25 Basis Carryover
Partial Cash Out or Debt Reduction ($85k Mortgage Boot)Recognized Boot Cap = Lower of Boot or Realized Gain (IRC 1031(b))Inject Fresh Cash Equity at Closing to Offset Mortgage Boot$24,480 Immediate Boot Tax Avoided (25% + 3.8% NIIT)Calculate Cash Injection Offset Before Day 180 Closing
Depreciated Commercial Asset with Post-Acquisition CapExIRC Section 168(k) Bonus Depreciation + Cost SegregationPair 1031 Exchange Carryover Basis with Excess Cost Segregation$68,500 First-Year Accelerated Depreciation ShieldRun Form 4562 Accelerated Depreciation Overlay

Related Statutory Calculators & Guides

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ProfitHelm is an independent financial research publisher. We may earn a commission when you register or subscribe through approved affiliate links on this page (IPX1031, Xendoo, Mercury, DLP Capital, GROUNDFLOOR, and verified Qualified Intermediary or real estate capital partners) at no additional cost to you. Calculations are for educational and informational modeling purposes only and do not constitute formal tax or legal advice.

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Frequently Asked Questions

Why can the 180-day Section 1031 exchange window be shorter than 180 days?

Under IRC Section 1031(a)(3)(B)(ii), the exchange period ends on the earlier of 180 calendar days after closing the relinquished property OR the due date (including extensions) of the taxpayer's federal income tax return for the year of the transfer. If you close between October 19 and December 31, you must file IRS Form 4868 (or Form 7004 for entities) before filing your return to receive the full 180 days.

What statutory compliance rules cannot be verified by a 1031 calculator alone?

Arithmetic models cannot verify non-numeric statutory mandates: executing a written Qualified Intermediary exchange agreement before relinquished closing under Treas. Reg. 1.1031(k)-1(g)(4) and screening out disqualified persons under Treas. Reg. 1.1031(k)-1(k). Investors must also deliver signed 3-Property or 200% Rule written identification by midnight of Day 45 and file annual state clawback returns such as California FTB Form 3840.

Connected Statutory Topic Cluster: Virginia Section 1031 Exchange Decision Architecture

Navigate connected pillar models, side-by-side comparative matrices, and jurisdiction/entity compliance calculators:

Tier 1: Core Statutory Tax & Capital Pillar Hubs
Tier 2: Comparative Financing, Entity & Arbitrage Matrices
Tier 3: Specialized Compliance, Jurisdiction & Asset Spokes