1031 Exchange Calculator
Capital gains tax deferred via a Section 1031 like-kind real estate exchange, including boot.
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About the 1031 Exchange Calculator
Estimates the capital gains tax deferred by using a US IRC Section 1031 like-kind real estate exchange instead of simply selling — modeling the 'boot' that becomes immediately taxable if you don't reinvest all your equity and debt into the replacement property.
- Enter the Adjusted basis and Sale price of the property you're relinquishing.
- Enter any debt paid off at closing, and your assumed capital gains rate.
- Enter the Replacement property's price and any new debt you're taking on it.
- Read the deferred tax, any taxable boot, and the substituted basis in your replacement property.
Basis $200,000, sale price $500,000, $100,000 mortgage paid off, replacement property $550,000 with $150,000 in new debt, 20% assumed rate: equity out ($400,000) equals equity in ($400,000), so boot is $0 and the full $300,000 gain is deferred — $60,000 in tax deferred.
This is a simplified estimate, not tax or legal advice. It ignores selling/closing costs, depreciation recapture (taxed separately, up to 25%), and state-specific rules. A real 1031 exchange requires identifying replacement property within 45 days of the sale, closing within 180 days, and running the entire transaction through a qualified intermediary.
- • The 45-day identification and 180-day closing deadlines are strict and start the day your relinquished property closes.
- • Any cash you take out of the exchange becomes taxable boot immediately.
- • Depreciation recapture on the relinquished property isn't deferred the same way as the capital gain.
- IRS — Like-Kind Exchanges Under IRC Section 1031 — accessed 2026-08-30
Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.