Calculators
1031 Exchange Calculators
We make it easy to calculate the capital gains tax on the sale of your real estate investment property.
You may consider a 1031 exchange as a viable alternative to selling your real estate investment property outright. With a 1031 exchange, you can defer your capital gains taxes. Meanwhile, you can use the proceeds from your relinquished property sale to purchase replacement property of equal or greater value — and get the most value out of your money.
At Banker Exchange, we want you to understand what a 1031 entails. We offer 1031 exchange calculators to show you the capital gains tax you will pay on the sale of your investment property versus using a 1031 exchange. Try our calculators today, and if you want to learn more about 1031 exchanges, check out our educational resources.
How Our 1031 Exchange Calculators Work
Our 1031 exchange calculators utilize the sale price of your relinquished property, purchase price of your replacement property, and other relevant information to estimate your capital gains taxes. To use our calculators, here is what you need to do:
- Provide information about your investment property sale and purchase.
- calculate your capital gains taxes.
- Use this information to determine if a 1031 exchange is right for you.
In addition to utilizing our 1031 exchange calculators, our team can help answer any questions you have. If you are ready to pursue a 1031 exchange, we can help you start the process.
How Capital Gains Taxes Work
You face capital gains taxes for profits on any investment you sell. If you own an investment property and sell it, you are required to pay capital gains taxes. In this scenario, you may be required to pay a short- or long-term capital gains tax.
A short-term capital gains tax applies to profits on assets you held for one year or less. Comparatively, a long-term capital gains tax applies to profits on assets you hold for more than one year. With short- and long-term capital gains taxes, you may wind up paying thousands of dollars to the IRS.
Short-term capital gains taxes are incorporated into your annual taxable income. They are taxed at a rate of 10%, 12%, 22%, 24%, 32%, 35%, or 37%. Long-term capital gains are taxed at a rate of 0%, 15%, or 20% based on your taxable income.
Why It Pays to Calculate Your Capital Gains Tax
There can be times when a 1031 exchange is a superior option in lieu of selling your real estate investment property and paying a capital gains tax on your profits. By calculating your capital gains tax, you can get a good idea of how a 1031 exchange can impact your bottom line. If you feel comfortable with a 1031 exchange, you can partner with an experienced qualified intermediary (QI) to handle your exchange.
We are an experienced 1031 exchange qualified intermediary – and more.
Banker Exchange is a trusted provider of 1031 exchange services. We have more than 30 years of experience as a qualified intermediary. Our team gives the insights, resources, and tools needed to make the most of your 1031 exchange.