TaxHQ

Property sale & 1031 exchange

The bookend to cost segregation: accelerate depreciation on the way in, see the recapture bill on the way out. Compare selling outright against deferring the gain with a § 1031 like-kind exchange.

Disposition type

Tax year & filing

Sets the rate band: the gain stacks on top of this income.

Sale

Commissions, closing, transfer tax — reduces amount realized.

Basis & depreciation

Purchase price + capital improvements (before depreciation).

Recaptured on sale — § 1250 (real property) at ≤ 25%.

Depreciation on 5/15-yr personal-property components recaptures as ordinary income, FIRST. Leave 0 for straight-line real property.

Tax on sale (2025)

$—

Enter sale price and basis to see the tax.