This calculator compares three scenarios: selling now, keeping the property as a rental, or using a 1031 exchange to defer taxes and reinvest into another property.
What This Calculator Compares
This tool compares three scenarios:
Scenario 1 — Sell Now
- Sell property
- Pay capital gains tax and depreciation recapture
- Calculate net cash after selling
Scenario 2 — Keep Renting
- Continue renting the property
- Estimate rental income and expenses
- Estimate property appreciation
- Sell later and calculate taxes
- Calculate net worth after several years
Scenario 3 — 1031 Exchange
- Sell property
- Defer capital gains tax
- Reinvest into a new property
- Estimate appreciation and equity growth
- Compare long-term net worth
This calculator helps estimate which path may be financially better over time.
Example Scenario
If a property has large appreciation and high taxes due at sale, a 1031 exchange may allow the investor to defer taxes and invest a larger amount into the next property.
If rental income is strong and appreciation is expected, keeping the property may result in higher net worth over time.
If the owner needs cash or plans to leave the U.S., selling now may be the best option.
Frequently Asked Questions
What is a 1031 exchange?
A 1031 exchange allows investors to sell an investment property and reinvest into another investment property while deferring capital gains tax.
Does this calculator include taxes?
Yes, it includes estimated capital gains and depreciation recapture when selling.
Are these projections exact?
No. Appreciation, rent growth, and expenses are estimates and will vary over time.
Related Calculators
- Exit / Relocation Calculator
- FIRPTA Withholding Calculator
- FIRPTA Refund Calculator
- Rental Income Calculator
Related Guides
- 1031 Exchange Timeline: 45-Day and 180-Day Rules
- Depreciation Recapture Explained When Selling Rental Property
- Do Foreign Sellers Pay Capital Gains Tax in the U.S.?
- Exit Strategy: Turning Your Home into a Rental
Important
This calculator compares financial scenarios using projected appreciation, rent growth, expenses, and tax rates. Actual results will vary based on market conditions, tax laws, and individual financial situations. This tool is for planning and educational purposes only.