How Much Can You Keep? 1031 Exchange Tax Deferral Estimator

Selling a rental property can trigger a significant federal capital gains tax bill — often 15 to 20 percent of your profit. A 1031 like-kind exchange lets you defer that tax entirely by rolling your equity into a new investment property. Tennessee’s zero state income tax makes this strategy even more powerful here than almost anywhere else in the country. Use this estimator to see exactly how much you could defer, and what you’d need to reinvest to qualify. Then talk to your CPA and a Qualified Intermediary before you list.

Team Denehy · Investor Tools
1031 Exchange Deferral Estimator

Selling an investment property? See how much in capital gains taxes you could defer by rolling your equity into a new “like-kind” property here in the Upper Cumberland.

🏠Property You’re Selling
$
Your adjusted cost basis in the property
$
$
Typically 6–8% of sale price
📋Tax & Exchange Details
Tennessee has no state income tax on gains
$
Total depreciation taken (taxed at 25% — enter $0 if unsure, ask your CPA)

ⓘ Tennessee has no state income tax on capital gains. Your primary tax liability is federal — a significant advantage for Upper Cumberland investors.

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Taxes You Could Defer
Federal capital gains + depreciation recapture
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Equity Available to Reinvest
Net proceeds available for next property
📈Full Gain & Deferral Breakdown
Gain Calculation
Sale Price—
Selling Costs—
Adjusted Cost Basis—
Realized Capital Gain—
Tax Deferral Estimate
Capital Gains Tax (federal)—
Depreciation Recapture Tax (25%)—
Tennessee State Tax$0 — No state income tax
Total Tax Deferred via 1031—
To Defer 100% of Your Taxes You Must Reinvest At Least:
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Into a like-kind property of equal or greater value and debt within 180 days
ⓘ Important 1031 Exchange Rules: You have 45 days from closing to identify replacement properties and 180 days to close on the new property. A Qualified Intermediary (QI) must hold your funds — you cannot take possession of the sale proceeds. This tool uses standard federal rates and is for estimation only. Always consult a Qualified Intermediary and your CPA before starting an exchange.

Ready to trade up in the Upper Cumberland?

A 1031 Exchange can dramatically accelerate your portfolio growth. We can point you toward replacement properties that meet your timeline and return targets.

Talk to Team Denehy →