A 1031 exchange (also called a like-kind exchange) allows real estate investors to defer capital gains taxes by reinvesting the proceeds from a property sale into a replacement property. The IRS imposes two strict deadlines: you must identify replacement properties within 45 calendar days and close on the replacement within 180 calendar days of your sale. Missing either deadline disqualifies the exchange entirely.
Exchange Details
Date you closed on the relinquished property sale
Agent commissions, closing costs, etc.
Total depreciation claimed on the property (subject to 25% recapture)
Exchange Timeline
Estimated Tax Deferral
1031 Exchange Identification Rules
3-Property Rule
You may identify up to 3 replacement properties regardless of their total fair market value.
200% Rule
You may identify more than 3 properties, but their combined fair market value cannot exceed 200% of the relinquished property's value.
95% Rule
If you exceed the 3-property and 200% rules, you must acquire at least 95% of the aggregate value of all identified properties.
Disclaimer: This calculator provides estimates for educational purposes only. It does not account for state taxes, filing status, net investment income tax (NIIT), or individual circumstances. The tax deferral estimate uses simplified rates (20% capital gains, 25% depreciation recapture). Always consult a qualified tax advisor or 1031 exchange intermediary before proceeding with an exchange.
How to Use the 1031 Exchange Timeline Calculator
A 1031 exchange can save real estate investors tens or even hundreds of thousands of dollars in capital gains taxes, but only if you meet the strict IRS deadlines. Missing the 45-day identification window or the 180-day closing deadline by even one day disqualifies the entire exchange. This 1031 exchange calculator helps you track both deadlines and estimate how much federal tax you could defer.
Step 1: Enter Your Sale Closing Date
Enter the date you closed (or plan to close) on the sale of your relinquished property. This is Day 0 of your exchange timeline. The calculator defaults to today's date, but you can change it to a past or future date. Both the 45-day and 180-day deadlines are counted in calendar days from this date, including weekends and holidays.
Step 2: Enter Your Financial Details
Fill in the original purchase price (your cost basis), the sale price, any selling costs (commissions, closing costs, transfer taxes), and the total depreciation you have claimed on the property. The calculator uses these figures to determine your capital gain and estimate the taxes you would owe without the 1031 exchange. Depreciation recapture is taxed at a flat 25% rate, while the remaining capital gain is estimated at a 20% long-term rate.
Step 3: Review Your Timeline
The visual timeline shows your three key dates: the sale date, the 45-day identification deadline, and the 180-day closing deadline. Each deadline is color-coded green if it is still in the future or red if it has already passed. The calculator also warns you if either deadline falls on a weekend, since the IRS does not extend 1031 deadlines for weekends or holidays. Plan to complete your actions before any weekend deadline.
Step 4: Understand Your Tax Deferral
The tax deferral section shows you the estimated federal taxes you would owe if you sold without a 1031 exchange. This includes both the capital gains tax on your profit and the depreciation recapture tax. By completing a successful 1031 exchange, you defer this entire amount, reinvesting it into your replacement property instead of paying it to the IRS. The deferral continues indefinitely as long as you keep exchanging into like-kind properties.
Identification Rules to Remember
During the 45-day identification period, you must formally identify potential replacement properties in writing to your qualified intermediary. The three most common rules for identification are the 3-Property Rule (identify up to three properties regardless of value), the 200% Rule (identify any number but total value cannot exceed 200% of the sold property), and the 95% Rule (if you exceed either limit, you must acquire at least 95% of identified value). Most exchangers use the 3-Property Rule for simplicity.
For a detailed walkthrough, see our guide: 1031 Exchange Rules Guide.
FAQ
Is this 1031 exchange calculator free?
Yes, this calculator is completely free. Calculate your exchange deadlines and estimated tax deferral with no signup or account required.
Is my data safe?
Yes, all calculations run locally in your browser. No financial data is sent to any server or stored anywhere.
What is a 1031 exchange?
A 1031 exchange (named after IRC Section 1031) lets you defer capital gains taxes by reinvesting proceeds from a sold property into a similar 'like-kind' property. Both properties must be held for investment or business use.
What is the 45-day identification rule?
After selling your relinquished property, you have exactly 45 calendar days to formally identify up to three potential replacement properties in writing to your qualified intermediary. This deadline is strict and cannot be extended.
What is the 180-day closing deadline?
You must close on your replacement property within 180 calendar days of selling your original property, or by your tax return due date (including extensions), whichever comes first.
Can I get an extension on 1031 deadlines?
Generally, no. The 45-day and 180-day deadlines are strict statutory deadlines. The only exceptions are federally declared disaster areas, where the IRS may grant deadline relief.
What properties qualify for a 1031 exchange?
Both properties must be held for investment or business use — rental properties, commercial buildings, and undeveloped land all qualify. Your primary residence does not qualify, nor do stocks, bonds, or personal property.
How much tax can I defer with a 1031 exchange?
You can defer both federal capital gains tax (typically 15-20%) and depreciation recapture tax (25%) on the full gain. State taxes may also be deferred. The deferral continues until you sell without doing another exchange.