Lazy 1031 Exchange Calculator

Disclaimer: This calculator provides estimates for educational purposes only and should not be considered tax, legal, or investment advice. Actual results will vary based on your specific situation, including actual cost segregation study results for your specific property. Tax laws are complex and subject to change. Always consult with a qualified tax professional and financial advisor before making investment decisions.

Tax Deferral, Not Elimination: The Lazy 1031 strategy provides tax deferral, not permanent tax elimination. The depreciation taken reduces your cost basis in the syndication investment, which may result in higher taxable gain when that investment is eventually sold. Consult your CPA about long-term tax planning strategies.

State Tax Considerations: This calculator focuses on federal taxes only. Some states (including CA, NY, and NJ) do not conform to federal bonus depreciation rules. State tax treatment of capital gains and passive activity losses varies significantly. Consult with a qualified tax professional for state-specific guidance.

Bonus Depreciation: 100% bonus depreciation applies to replacement property acquired after January 19, 2025. Property acquired before this date may be subject to lower bonus depreciation rates under the previous phase-down schedule.

Passive Activity Rules: This strategy relies on IRS passive activity rules (IRC §469) that treat gain from disposing of a passive activity as passive income. The application of these rules to your specific situation should be confirmed by a qualified tax professional familiar with passive activity regulations.