1031 Exchange Tax Savings
Many resources are available to discuss each factor in calculating savings and taxes that accompany a 1031 exchange. For those considering a 1031 exchange, Midland offers this 1031 Exchange Calculator. This Calculator estimates the taxable impact of your proposed real estate sale and purchase.
To defer all taxes with a 1031 Exchange, you must purchase at least as much as you sell (Net Sale). You must also use all of the cash received (Net Cash Received). If you take cash out or purchase less than you sell, it is considered recognized gain and is taxed. If the purchase property has a lesser valuation than your sale property, you owe taxes on the cost difference.
About the Calculator
The 1031 Exchange Calculator considers information for both the sale and purchase properties. It uses the date of the sale, adjusted basis, sales price, cost, commissions, exchange fee, liabilities, and mortgages. A definition of the form fields helps in understanding the information needed to accurately estimate your gains and basis.
With this information, the Calculator will provide you with a recognized gain and basis of property received. The 1031 Exchange Calculator gives you the option to view and print your full report.
The information provided in this 1031 Exchange Calculator is made available for your independent use only as a self-help tool. The Calculator does not provide investment or tax advice. We cannot (and do not) guarantee the accuracy of these values. All calculations are hypothetical and used for illustrative purposes only. We recommend seeking personalized, professional advice from a qualified professional regarding your financial investments.
You can contact Midland 1031 if you have questions or need assistance with the Calculator.