Calculation of tax savings from 1031 exchange

[Stacy Tring]

Hi everyone, 

Do my calculations look correct on the potential tax savings I would realize ($116,238.98!) if I did a 1031 exchange? Thanks in advance.

[Steve Wolterman]

Hi Stacy, looking at your numbers, I come up with the following:

Dep Recap is 25% on 56,631.30 = 14,157.83

Fed Cap Gain is 20% on the remainder of the gain, 20% on 126,739.90 = 25,347.97

State Gain is 7.25% on 183,371.20 = 13,294.41

NIIT is 3.8% on 183,371.20 = 6,968.111