See the long-term cost of cashing out. Compare your net worth after paying the tax and reinvesting what's left, versus deferring the full gain through a 1031 exchange.
When you sell without a 1031 exchange, a large portion of your equity immediately goes to the IRS — and that money stops compounding for you. The 1031 exchange lets you defer the capital-gains tax entirely, keeping the full equity invested and growing.
Enter your total equity before tax, the estimated tax bill if you sold today, an expected annual return, and your intended hold period. The calculator shows what each path produces and highlights the exchange advantage in dollar terms.
Educational estimate only. This tool is for general illustration and is not tax, legal, or investment advice. It uses simplifying assumptions and the figures you enter, which may not reflect your situation or current law; depreciation recapture, net investment income tax, state taxes, and other items can change the result materially. Figures are illustrative and not guaranteed. Consult your own qualified tax and legal advisors before acting. Not an offer or solicitation. DST interests are sold only to accredited investors via private placement memorandum. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC; Baker 1031 Investments is independent of ASI.
The tax you don't pay stays invested and compounds. Over a long hold, that head start can be worth far more than the tax itself.
Only if you eventually sell without exchanging again. Many investors keep exchanging until death, when heirs receive a stepped-up basis that can eliminate the deferred tax.
No. This is an illustration at a fixed assumed return; actual results vary and real estate involves risk including loss of principal.
