Adjusted Basis = Original Price + Improvements − Depreciation Taken; Total Gain = Net Sale Price − Adjusted Basis
FAQ
What is depreciation recapture?
The IRS taxes the depreciation you claimed separately from the rest of your capital gain, at a rate capped at 25% federally, when you sell. A 1031 exchange defers this along with capital gains tax.
What are the deadlines?
You must identify a replacement property within 45 days of the sale and close within 180 days — both measured from the closing date of the property you sold.
Does this calculator give me a final tax number?
No — it's a planning estimate. Actual tax owed depends on your full tax situation. Work with a CPA and a qualified intermediary before executing an exchange.
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