§453 · 1031 Calculator
1031 Exchange Calculator — And What It Actually Costs You
See what a 1031 exchange defers on your sale — then see the part no one mentions: you stay a landlord, holding until death or another exchange. Compare it, dollar for dollar, against a §453 structured installment sale that pays you hands-off.
§453 Mechanic — How the Money Flows
Buyer cash → Assignment Co. → A-rated carrier → You, on schedule
Illustrative only — real 2026 federal + California brackets, unrecaptured §1250 recapture at 25%, 3.8% NIIT. §453 modeled at a conditional 4.4% over 20 years. Not tax advice; your CPA signs off before you commit.
Why §453 wins — in plain English
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Pay the tax now, you only put 65¢ of every dollar to work. Structure it and the whole dollar keeps working — same rate, bigger pile.
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At ~4.4% your $— roughly doubles to $— in about 16 years — the pay-now seller only doubles the smaller after-tax pile.
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Your full dollar stays working (not 65¢) and the gain is taxed in small yearly slices at lower rates — about $1.29 kept for every $1 the pay-now seller ends up with. That's the whole trick.
Illustrative only, not tax advice — bring the numbers to your CPA, or send them the §453 guide built for accountants.
Run your specific numbers
The calculator runs your sale through real 2026 federal + state tax brackets and shows §453 savings vs lump sum side-by-side.
Run the calculator → 317-463-6659