would a 1031 exchange save me much in taxes?

[Ryan Fox]

I'm asking this question because I'm getting different answers from different CPAs as to how much I would save.  I'd like to sell one of my rentals and put the proceeds into stocks instead, but if the tax hit is too high, I'd do a 1031 exchange.  

The gain on the sale of the rental property would be about $58k after expenses.  For this year, I currently have about $131k in short-term capital losses outside of real estate.  I have no other short-term gains to offset those losses. 

Since I bought the property in 2019, I've written off about $13k in depreciation.  How much would I save doing the 1031?  TIA!

[Michael Plaks]

@Ryan Fox

Any CPA who gives you a numerical answer is making some assumptions, most likely generic and incorrect. 

Your capital losses will offset your rental property gains, so a 1031 exchange will save you $0. All it will accomplish is push your gains into the future while keeping your capital losses locked up. Bad idea all around.

I wonder however how you calculated your gain of $58k. I'm afraid this is the cash you are expecting at closing. If so, this is not the gain for tax purposes. Your gain is your sales price minus your purchase price, adjusted for closing costs and improvements. Financing does not matter.