1031 Exchange
Selling price $100,000
Approx. 30% capital gain taxes $0.00
Net Proceeds $100,000

Using the net proceeds as a 20% down payment on the replacement property, the taxpayer can acquire a property with the following fair market value:

Typical Sale $350,000
1031 Exchange $500,000

The 1031 exchange enables the astute investor to move up $150,000 in property value. This $150,000 invested at a modest 4% appreciation per year, will yield:

5 years $32,498
10 years $72,037
15 years $120,142
20 years $178,668