---------------USERS------------------------
*Real estate agents can use 1031CALC to forecast when their clients need to finish identifying replacement property.
*Taxpayers and their advisors can use 1031CALC as a shorthand way to calculate federal taxes on the sale of a capital asset held greater than one year.
*1031 exchangers should use it to remember their deadlines and the two items that alter their deadlines: the tax return due date and any presidentially declared disasters.
*Exchange accommodators can use it to quickly remind themselves of when to expect the ID letter and closing papers on the replacement property.
---------------SCREENS------------------
The first screen helps estimate the possible federal income taxes associated with the sale of the property and hence the savings possible by doing an exchange.
The second screen calculates the end of the 45 day identification period and the end of the 180 day exchange period based upon the date that the relinquished property is closed and transferred to the new owner.
The third screen contains cautions and additional information regarding 1031 exchanges.
---------------TAX RATES USED-----------
Based upon the standard depreciation recapture rate (unrecaptured section 1250) of 25% in effect for 2010 and the long-term capital gains rate of 15% for ordinary income tax brackets of 25% and above where most exchangers are.
---------------LIMITATIONS--------------
1031CALC calculates estimated taxes from the sale of property the way that most people do, but not how CPAs do. It does not calculate the effect of accelerated depreciation recapture at ordinary income rates, or the effect of exceeding certain AGI phase out amounts, or the effect of the alternative minimum tax, if any. (See our main web site at 1031eci.com for more info on these items.) Nor does it give state tax calculations. (See our sister web site for that at 1031cu.com.)
---------------DISCLAIMER---------------
Written by a CPA with over 33 years of experience that is also a Certified Exchange Specialist®. Talk to your tax advisor as these generic calculations may not take into effect your individual circumstances.
