Section 1031 Real Estate Exchange & Capital Gains Deferral Calculator
Calculate capital gains tax deferral, Section 1250 depreciation recapture, and 45-day/180-day deadlines under IRC Section 1031 for 2026-2027.
Exchange Parameters (2026-2027)
Model real estate capital gains deferral, Section 1250 depreciation recapture, and multi-state tax drag.
Tax Deferral & Basis Projection
Total Tax Liability Deferred
$706,350
Tax Drag Avoided: 28.25% of Gross Sale
Total Realized Gain
$1,850,000
New Replacement Basis
$650,000
Statutory Treasury Deadlines
45-Day Identification Window: Must identify replacement properties in writing by midnight of calendar day 45.
180-Day Exchange Period: Must complete purchase and take title by midnight of calendar day 180.
180-Day Exchange Period: Must complete purchase and take title by midnight of calendar day 180.
Mandatory Clawback Notice: California FTB Form 3840
California enforces an ongoing clawback statute. Relinquishing California real estate to purchase out-of-state property requires filing FTB Form 3840 annually to report the deferred gain until final taxable disposition.
2026-2027 Interstate Section 1031 Arbitrage Matrix ($2.5M Commercial Asset)
Empirical comparison of capital gains deferral and state tax drag across primary commercial real estate migration corridors.
| Relinquished State | Replacement State | State Tax Drag Avoided | Total Tax Deferred | Effective Rate | Clawback Compliance |
|---|---|---|---|---|---|
| California (13.3%) | Texas (0.0%) | $246,050 | $706,350 | 28.25% | FTB Form 3840 Annual Filing |
| California (13.3%) | Florida (0.0%) | $246,050 | $706,350 | 28.25% | FTB Form 3840 Annual Filing |
| New York (10.9%) | Florida (0.0%) | $201,650 | $661,950 | 26.48% | IT-205 Allocation |
| New Jersey (10.75%) | Texas (0.0%) | $198,875 | $659,175 | 26.37% | NJ-1040 Deferral |
| Massachusetts (9.0%) | New Hampshire (0.0%) | $166,500 | $626,800 | 25.07% | Schedule D Annual Tracking |
| Oregon (9.9%) | Washington (0.0%) | $183,150 | $643,450 | 25.74% | Form 1031 Annual Report |
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50-State & DC Commercial Real Estate Directory
State Section 1031 Exchange & Capital Gains Deferral Models (51 Jurisdictions)
Select a state to model commercial real estate Section 1031 capital gains deferral, Section 1250 depreciation recapture, and interstate tax clawback rules.
AL Commercial Exchange
Alabama 1031 Calculator
Tax Drag: 5.0% State Tax • Calculate Deferral →
AK Commercial Exchange
Alaska 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
AZ Commercial Exchange
Arizona 1031 Calculator
Tax Drag: 2.5% State Tax • Calculate Deferral →
AR Commercial Exchange
Arkansas 1031 Calculator
Tax Drag: 3.9% State Tax • Calculate Deferral →
CA Commercial Exchange
California 1031 Calculator
Tax Drag: 13.3% State Tax • Calculate Deferral →
CO Commercial Exchange
Colorado 1031 Calculator
Tax Drag: 4.4% State Tax • Calculate Deferral →
CT Commercial Exchange
Connecticut 1031 Calculator
Tax Drag: 6.99% State Tax • Calculate Deferral →
DE Commercial Exchange
Delaware 1031 Calculator
Tax Drag: 6.6% State Tax • Calculate Deferral →
DC Commercial Exchange
District of Columbia 1031 Calculator
Tax Drag: 10.75% State Tax • Calculate Deferral →
FL Commercial Exchange
Florida 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
GA Commercial Exchange
Georgia 1031 Calculator
Tax Drag: 5.39% State Tax • Calculate Deferral →
HI Commercial Exchange
Hawaii 1031 Calculator
Tax Drag: 11.0% State Tax • Calculate Deferral →
ID Commercial Exchange
Idaho 1031 Calculator
Tax Drag: 5.7% State Tax • Calculate Deferral →
IL Commercial Exchange
Illinois 1031 Calculator
Tax Drag: 4.95% State Tax • Calculate Deferral →
IN Commercial Exchange
Indiana 1031 Calculator
Tax Drag: 3.05% State Tax • Calculate Deferral →
IA Commercial Exchange
Iowa 1031 Calculator
Tax Drag: 3.8% State Tax • Calculate Deferral →
KS Commercial Exchange
Kansas 1031 Calculator
Tax Drag: 5.58% State Tax • Calculate Deferral →
KY Commercial Exchange
Kentucky 1031 Calculator
Tax Drag: 4.0% State Tax • Calculate Deferral →
LA Commercial Exchange
Louisiana 1031 Calculator
Tax Drag: 4.25% State Tax • Calculate Deferral →
ME Commercial Exchange
Maine 1031 Calculator
Tax Drag: 7.15% State Tax • Calculate Deferral →
MD Commercial Exchange
Maryland 1031 Calculator
Tax Drag: 5.75% State Tax • Calculate Deferral →
MA Commercial Exchange
Massachusetts 1031 Calculator
Tax Drag: 9.0% State Tax • Calculate Deferral →
MI Commercial Exchange
Michigan 1031 Calculator
Tax Drag: 4.25% State Tax • Calculate Deferral →
MN Commercial Exchange
Minnesota 1031 Calculator
Tax Drag: 9.85% State Tax • Calculate Deferral →
MS Commercial Exchange
Mississippi 1031 Calculator
Tax Drag: 4.7% State Tax • Calculate Deferral →
MO Commercial Exchange
Missouri 1031 Calculator
Tax Drag: 4.7% State Tax • Calculate Deferral →
MT Commercial Exchange
Montana 1031 Calculator
Tax Drag: 5.9% State Tax • Calculate Deferral →
NE Commercial Exchange
Nebraska 1031 Calculator
Tax Drag: 5.2% State Tax • Calculate Deferral →
NV Commercial Exchange
Nevada 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
NH Commercial Exchange
New Hampshire 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
NJ Commercial Exchange
New Jersey 1031 Calculator
Tax Drag: 10.75% State Tax • Calculate Deferral →
NM Commercial Exchange
New Mexico 1031 Calculator
Tax Drag: 5.9% State Tax • Calculate Deferral →
NY Commercial Exchange
New York 1031 Calculator
Tax Drag: 10.9% State Tax • Calculate Deferral →
NC Commercial Exchange
North Carolina 1031 Calculator
Tax Drag: 4.5% State Tax • Calculate Deferral →
ND Commercial Exchange
North Dakota 1031 Calculator
Tax Drag: 2.5% State Tax • Calculate Deferral →
OH Commercial Exchange
Ohio 1031 Calculator
Tax Drag: 3.5% State Tax • Calculate Deferral →
OK Commercial Exchange
Oklahoma 1031 Calculator
Tax Drag: 4.75% State Tax • Calculate Deferral →
OR Commercial Exchange
Oregon 1031 Calculator
Tax Drag: 9.9% State Tax • Calculate Deferral →
PA Commercial Exchange
Pennsylvania 1031 Calculator
Tax Drag: 3.07% State Tax • Calculate Deferral →
RI Commercial Exchange
Rhode Island 1031 Calculator
Tax Drag: 5.99% State Tax • Calculate Deferral →
SC Commercial Exchange
South Carolina 1031 Calculator
Tax Drag: 6.2% State Tax • Calculate Deferral →
SD Commercial Exchange
South Dakota 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
TN Commercial Exchange
Tennessee 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
TX Commercial Exchange
Texas 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
UT Commercial Exchange
Utah 1031 Calculator
Tax Drag: 4.55% State Tax • Calculate Deferral →
VT Commercial Exchange
Vermont 1031 Calculator
Tax Drag: 8.75% State Tax • Calculate Deferral →
VA Commercial Exchange
Virginia 1031 Calculator
Tax Drag: 5.75% State Tax • Calculate Deferral →
WA Commercial Exchange
Washington 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →
WV Commercial Exchange
West Virginia 1031 Calculator
Tax Drag: 5.12% State Tax • Calculate Deferral →
WI Commercial Exchange
Wisconsin 1031 Calculator
Tax Drag: 7.65% State Tax • Calculate Deferral →
WY Commercial Exchange
Wyoming 1031 Calculator
Tax Drag: 0.0% (No State Tax) • Calculate Deferral →