After Tax Equity X 4

[Yoochul C.]

Hey all,

I used a 1031 exchange calculator and after punching in the numbers the result was an after tax equity x 4 of $896,000.  What does this value mean?  Does it mean I have to buy a home at $896,000 to defer my taxes in a 1031 exchange or is it $224,000.  

Thanks
Yooch

[Jayson Cannon]

Hello, reviving a super old thread here, but I had this same question and I think I found the answer.  I believe the site you got the "After Tax Equity x 4" term is Asset Preservation Incorporated (https://apiexchange.com/capital-gain-tax-calculator/).  In that calculator they are trying to show the difference between a Sale and Then Repurchase (say years later) vs a Sale in a 1031 exchange.  The "x 4" bit is trying to highlight the purchasing power of each method using a 25% down payment.