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1031 Exchange Tax Savings Calculator

Enter your property details to see your estimated tax bill without a 1031 exchange — and the compounding advantage of reinvesting the full sale price instead.

Your Property Details

$100K$20M
$50K$2.00M
$0$500K

Tax Rates

0%20%
0% (FL, TX, etc.)15% (CA)

Compounding Projection

4%15%
5 years30 years

Your Results

Tax Breakdown — No 1031 Exchange

Total capital gain$1,400,000
Depreciation recapture (25%)$50,000
Federal capital gains tax (20%)$240,000
Net Investment Income Tax (3.8%)$53,200
State capital gains tax (5%)$70,000
Total tax bill$413,200
Capital available to reinvest$1,586,800

With a 1031 Exchange

Tax due at closing$0
Capital available to reinvest$2,000,000

Compounding Advantage Over 10 Years at 8% / Year

Portfolio value — no 1031$3,425,782
Portfolio value — with 1031$4,317,850
Compounding advantage$892,068

Assumes the tax bill is paid at closing and remaining capital compounds at a constant rate. Illustrative only — does not model taxes owed on eventual sale.

A 1031 exchange defers your tax bill — it doesn't eliminate it. But keeping $413,200 invested and compounding rather than paying it to the IRS is a substantial advantage. At death, a step-up in basis eliminates the deferred gain for your heirs entirely.

Informational purposes only. This calculator provides illustrative estimates based on inputs you provide. It does not account for all applicable taxes, deductions, or individual circumstances. Federal and state tax laws are complex and subject to change. Results should not be relied upon as tax or financial advice. Consult a qualified CPA, tax attorney, or financial advisor before making any investment or tax decisions.

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Dayan Capital structures investments specifically to maximize after-tax returns for accredited investors. See how we apply these strategies in real deals.

Important Disclosures

Informational Only

This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security.

Risk Statement

Investments involve significant risk, including potential loss of principal, illiquidity, long hold periods, use of leverage, and sponsor discretion. Potential conflicts of interest may exist. All projected returns, including target ROI and preferred return figures, are forward-looking statements and are not guaranteed. Actual results may differ materially. Past performance of the MHC sector or any prior investment is not indicative of future results.

Tax Disclaimer

Tax benefits described herein are estimates only; individual tax treatment varies. Consult a qualified financial, legal, and tax advisor before investing.

Offering Documents

Any investment opportunity will be made available only through formal offering documents.

Accredited Investors Only

Investments are available to accredited investors only as defined under SEC Regulation D.

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