1031 Exchange Estimator:
Compare Taxes, Income, and Passive Alternatives
Selling investment real estate almost always forces owners to confront a high-stakes fork in the road: pay capital gains taxes today or defer them through a 1031 exchange and keep your equity working. On the surface, the choice can seem straightforward—but in reality, the long-term financial impact of each path is far more complex than most investors realize.
That’s exactly why Medalist’s 1031 Exchange Impact & Income Estimator was created.
This powerful planning tool goes beyond rough rules of thumb or generic calculators. It is designed to clearly illustrate the real after-tax outcomes of selling versus exchanging, helping you see how taxes, reinvestment assumptions, and income potential interact over time. Instead of guessing, you can model scenarios side by side and understand what each decision means for your cash flow, net worth, and long-term flexibility.
For example, the estimator shows how much equity is lost immediately to federal and state capital gains taxes if you sell outright—and how that reduced capital base can permanently lower future income potential. In contrast, it also illustrates how deferring taxes through a 1031 exchange allows you to reinvest gross proceeds, potentially generating higher passive income and preserving more wealth for the future.
Equally important, the tool helps frame the decision within a broader estate and legacy planning context. Many investors focus only on today’s tax bill, without considering how deferred gains may be eliminated entirely through a step-up in basis, or how simplified, passive structures can ease the burden on heirs. The estimator brings these considerations into focus, so your decision supports not just near-term returns, but long-term family goals.
Whether you are nearing retirement, seeking predictable income, or looking to simplify your real estate holdings, Medalist’s 1031 Exchange Impact & Income Estimator provides clarity at a moment when clarity matters most. It turns a complicated tax decision into a strategic planning opportunity—so you can move forward with confidence, purpose, and control.