Real Estate Calculators
How much tax could a 1031 exchange let me defer on this sale?
A 1031 exchange lets you sell an investment property, roll every dollar of profit into a like-kind replacement, and defer the capital gains tax you would otherwise pay today. The deferral is the engine of generational wealth in real estate: the money you do not hand to the IRS keeps buying property. This calculator estimates the tax a properly structured 1031 could defer using 2026 federal and Pennsylvania rates.
Your basis and your sale
Tax settings, 2026
0 / 15 / 20 by bracket in 2026.
Unrecaptured 1250 gain is capped at 25%.
2026 rates confirmed: federal long-term capital gains run 0, 15, and 20 percent; PA taxes capital gains at its flat 3.07% personal income tax rate; the NIIT applies above the statutory thresholds.
Sale proceeds minus your adjusted basis.
| Depreciation recapture (25%) | $15,000 |
| Federal long-term gain (20%) | $32,000 |
| NIIT (3.8%) | $0 |
| Pennsylvania (3.07%) | $6,754 |
Deferral, not forgiveness: the tax hangs on until the day you finally sell without a like-kind replacement, and you must reinvest at least as much as you sold for with equal or greater debt to defer it all. Cash you pull out, "boot," is taxed immediately. The replacement can be another investment property or, through the right sponsor, a Delaware Statutory Trust, which keeps the exchange alive while you step away from management. Read the 1031 & DST guide for the full picture, and work with a qualified intermediary and your CPA: Tim coordinates both.
Run the numbers with Tim, then talk them through
Estimates are a great starting point. A 20-minute conversation with Tim Tepes turns them into a plan you can act on, with real listings, real comparables, and honest advice.
Estimates are for education and planning only, not a loan approval, appraisal, or tax advice. Actual costs, rates, and values vary by property and lender.
Dig deeper with Tim's Lehigh Valley guides
1031 Exchanges & DSTs for Generational Wealth
How 1031s and Delaware Statutory Trusts work together to keep your wealth compounding.
Investment Properties Guide, 1031 Section
The 45-day and 180-day rules, like-kind requirements, and exchange types.
Investment Properties Guide, DST Section
Using a Delaware Statutory Trust as replacement property when you want passive ownership.
Investor Consultation
Tim coordinates with qualified intermediaries and tax advisors on exchanges.