1031 Exchange Calculator
See what a like-kind exchange can defer, and where boot could make part of it taxable.
What This Calculator Does
Compares the proceeds and debt on the property sold against the price and debt on the replacement to estimate the gain exposed, then shows how much a properly structured exchange can defer and how much could become taxable as boot.
Who Is This For
Owners of investment property considering a trade-up, out-of-state investors consolidating holdings, and anyone evaluating whether a 1031 exchange fits their situation before committing to one.
How It Works
Enter the sale price and selling costs, your adjusted basis, the mortgage paid off at the sale, and the price and new mortgage on the replacement property to see the estimated gain deferred, any cash or mortgage boot, and the gain recognized now.
Frequently Asked Questions
What is a 1031 exchange?
A 1031 exchange is a provision that allows an investor to defer tax on the gain from an investment property by rolling proceeds into another qualifying property, with the deferred tax carrying forward rather than being eliminated.
What are the identification and closing deadlines?
From the closing date of the sale, an exchanger generally has 45 days to identify replacement property in writing and 180 days to close on it, with both clocks running concurrently; the closing deadline is cut short if the return for the year of the sale falls due first.
Is a qualified intermediary required?
Yes — proceeds must generally pass through a qualified intermediary rather than the seller directly, since receiving the funds personally can disqualify the exchange.
What is boot in a 1031 exchange?
Boot refers to anything received in the exchange that is not like-kind property, such as cash retained or a reduction in debt on the replacement property, and it is generally taxable to the extent of the gain.