SHOP 1031

How it works

Retail strip with a single Starbucks endcap, dusk.

A deal worth understanding

Properties

Shake Shack at dusk with patio.

The universe, ranked by downside

Services

KinderCare Learning Center, a family arriving, figures blurred.

The human side of the exchange

Learn

Class-A multifamily, a DST-grade trophy asset, shown sparingly.

The work behind the numbers

All calculators

1031 calculator, free

Capital Gains Tax Calculator

Estimate the tax you would owe on an outright sale: depreciation recapture, federal capital gains, the 3.8% surtax, and state. Then see what a 1031 exchange defers.

Estimated tax if you sell outright
Total capital gain$1,900,000
Depreciation recapture (25%)$100,000
Long-term capital gains (20%)$300,000
Net investment income tax (3.8%)$72,200
State tax$252,700
Total tax burden$724,900
How this is calculated

Adjusted basis = purchase price − depreciation taken. Total gain = sale price − adjusted basis.

The gain up to depreciation taken is unrecaptured §1250 gain, taxed at 25%. The remainder is long-term capital gain, taxed at 0/15/20% by income and filing status.

Net investment income tax adds 3.8% above $250k joint / $200k single. State tax estimates the top marginal rate on the gain. This is an estimate, not tax advice. Confirm with your CPA.

Defer this tax through a 1031 exchange. Build your shortlist on Shop 1031.

Start your Shop 1031 profile

Estimates for planning. Not tax, legal, or investment advice. Confirm with your CPA, attorney, and qualified intermediary.