§1031 TAX-DEFERRED
EXCHANGES Taxable Sale vs. 1031 Exchange Typical Sale
1031 Exchange
Sale Price
$ 100,000
$ 100,000
Depreciation Recapture (25%)
$ 12,500
$ - 0-
Capital Gains (15%)
$
7,500
$ - 0-
Total Federal Tax Liability
$ 20,000
$ - 0-
Net Proceeds
$ 80,000
$ 100,000
Buying Power
$ 400,000
$ 500,000
(using net proceeds as 20% down payment)
(Note: This chart does not reflect state capital gains tax, which varies from state to state. The state of California has a current capital gain rate of 9 1/3%) First American Exchange is a Qualified Intermediary and is precluded from giving tax or legal advice. You must consult with your tax or legal advisor about your specific circumstances
For more information, please contact: Ken Harris Certified Exchange Specialist® Assistant Vice President
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