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Selling a rental and buying another: how much tax can a 1031 defer?

Enter the old and new property. See the gain you defer, any taxable boot, and your real 45-day and 180-day dates.

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$
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$
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%
Gain you defer
$0
Net sale sale price − selling costs$0
Total gain net sale − adjusted basis$0
Equity to reinvest net sale − loan payoff (held by the QI)$0
Cash going into the new property new price − new loan$0
Cash boot equity you don't reinvest$0
Mortgage boot debt paid off but not replaced (extra cash can cover it)$0
Taxable gain now boot, capped at your gain$0
Depreciation part × 25% $0
Rest × federal rate $0
California CA taxes gains as regular income$0
Estimated tax on boot$0
Possible extra: NIIT 3.8% if income is over $250K joint / $200K single$0
Without a 1031, estimated tax on the whole gain: $0 Tax pushed off (deferred, not erased): $0
Estimate only, not tax advice. Real numbers depend on your full tax return. Ask a CPA and your Qualified Intermediary before you list.
This sale shows no gain. A 1031 also defers a loss, so you would lose the write-off. Ask a CPA before doing one.

Your two hard deadlines

Day 45 · identify in writing

Signed list of replacement properties delivered to your QI by midnight. Calendar days. Weekends and holidays count.

Add to Google Calendar
Day 180 · close the new property

Add to Google Calendar

How many properties can you name?

3-property ruleUp to 3 properties, any price. Most people use this one.
200% rule
95% ruleName more than that, and you must actually buy at least 95% of the total value you named. Risky.

1031 checklist

0/0 done

Common mistake: "I can 1031 my own home." No. A 1031 is only for property held for investment or business. Your primary home uses a different rule: up to $250K / $500K of gain tax-free. See T22.

Next steps

  1. Before you list, call a CPA with your depreciation records. The basis number decides everything above.
  2. Pick a Qualified Intermediary and sign the exchange agreement before the sale closes. Never let sale money touch your account.
  3. Get a loan pre-approval for the replacement now. 45 days goes fast.
  4. Buying outside California? File FTB 3840 every year until you sell.
Ask Ken Watch 15-sec video

Email this 1031 summary to yourself

Ken will reply with the dates and a few Qualified Intermediaries and CPAs investors here use. No spam.

Or text: 408-666-2825