1031 Exchange Boot Tax Calculator

Boot received in 1031 exchange is taxable to extent of gain — quantify before structuring.

Relinquished sale price

Relinquished mortgage

Replacement purchase price

Replacement mortgage

Blended tax rate %

Total boot

$300,000

Tax on boot

$75,000

Cash boot

$200,000

How the math works

Cash boot = max(0, sale − purchase). Mortgage boot = max(0, old debt − new debt).

Cash boot $200k + mortgage boot $100k = $300k total × 25% = $75,000 tax on boot.

How to Use

Enter relinquished sale price.
Enter relinquished mortgage.
Enter replacement purchase price.
Enter replacement mortgage.
Enter blended tax rate %.
Read total boot.

Frequently Asked Questions

Boot taxation rules?

Cash boot (any cash received): taxable up to gain. Mortgage boot (replacement debt < relinquished debt): taxable. Personal property boot: taxable (excluded from like-kind under TCJA). Trade-down (replacement value < relinquished value): cash + mortgage boot. Tax char: boot taxed first as recapture (25% federal), then capital gain (15–20%). State tax additional. Key rule: replacement value ≥ relinquished + replacement debt ≥ relinquished debt = 0 boot.

How is this tax impact computed?

Tax outcomes depend on filing status, income bracket, depreciation schedule, basis adjustments, AMT exposure, and state conformity. Real estate tax planning typically involves cost segregation, 1031 exchanges, opportunity zone, depreciation recapture, passive activity rules, and entity structure (LLC vs partnership vs S-corp). This calculator provides directional analysis — final position requires CPA review.

State conformity?

States vary on conformity to federal tax code: California, NY, MA decouple selectively. Bonus depreciation: most states reduce or eliminate. QBI: most states don't conform. Section 1031: federal-only deferral, some states require state-level recapture. Property tax cap: state-specific (CA Prop 13, MI Headlee, FL SOH). Multi-state property requires apportionment analysis.

When to prioritize this strategy?

Tax strategies have setup cost, complexity, and audit risk. Cost segregation: $5–15k study, materially helps high-basis investors. 1031: 45/180 day deadlines, identification rules, qualified intermediary fees. Opportunity Zone: long hold required. Stack strategies: don't double-count benefits. CPA + tax attorney coordination essential for $1M+ strategies.