1031 Exchange & After-Tax ROI Calculator

See your true after-tax returns with 1031 exchange deferral, cost segregation savings, and capital gains analysis — the metric no competitor shows you.

What Is This Calculator?

Calculates your true after-tax ROI when selling a property — with and without a 1031 exchange. Shows exactly how much wealth you lose to taxes if you sell outright, and how much you keep by rolling into a new property.

Best for: Investors selling rental properties, anyone considering a 1031 exchange, CPAs and agents advising investor clients.

How to Use It — 4 Steps

1

Enter your sale details

Original purchase price, sale price, years held, and annual depreciation claimed. Find depreciation on your Schedule E tax return.

2

Enter your tax rates

Select your federal bracket and enter your state rate. California is 9.3%. Texas/Florida is 0%.

3

Enter replacement property details

The property you plan to buy in the 1031 exchange — price, expected appreciation, and new monthly rent.

4

Click Calculate

See your capital gains tax, 5-year wealth comparison with and without the exchange, and AI tax strategy recommendations.

Key Terms Explained

1031 Exchange

IRS rule allowing you to sell an investment property and buy another without paying capital gains tax — as long as you follow strict timelines.

Capital Gains Tax

Tax on profit from selling an asset. Long-term rate is 0%, 15%, or 20% depending on your income. Plus state tax on top.

Depreciation Recapture

The IRS taxes back the depreciation deductions you claimed at 25%. This is separate from capital gains tax.

Cost Segregation

Accelerates depreciation by reclassifying components to shorter tax lives — generates large year-1 deductions on new properties.

Property Sale Details

Residential: purchase price ÷ 27.5. Not sure? Use 3.6% of purchase price.
CA: 9.3% | TX/FL: 0% | NY: 8.8%

1031 Exchange — Replacement Property

Tax Impact Without 1031

Capital Gain
Tax Owed
Net Proceeds
ScenarioTax PaidCapital to Invest5-Yr Wealth
Sell & Pay Tax
1031 Exchange Recommended $0
1031 Advantage

Cost Segregation Opportunity

Accelerated Deduction
Year-1 Tax Savings
After-Tax ROI Boost

Cost segregation accelerates depreciation on 5, 7, and 15-year components. Consult a CPA before implementing.

AI Tax Strategy Analysis

● Analyzing your tax strategy...

Enter your numbers and click Calculate to see your after-tax ROI, 1031 exchange benefit, and AI tax strategy.

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