Finance category
Mortgage, loan, investing, tax, and money calculators.
1031 Exchange Calculator
Pressure-test a like-kind exchange before you list the relinquished property. Estimate realized gain, depreciation recapture, recognized boot, and the minimum replacement price and debt you need to fully defer capital gains tax.
Relinquished property
Replacement property
Tax rates
Tax deferred by exchange
$65,644
vs $91,872 if sold outright
Realized gain
$306,500
Basis: $281,000
Recognized (taxable) gain
$87,500
Boot: $87,500
Deferred gain
$219,000
Exchange safety check
Replacement falls short of the full reinvestment rules. Expect taxable boot equal to the shortfall — trading down in price, cash, or debt all trigger recognized gain.
Minimum replacement price
$587,500
to defer all gain
Minimum replacement debt
$210,000
matches relinquished loan
Cash that must be reinvested
$377,500
net proceeds after debt
Cash boot
$87,500
proceeds not reinvested
Debt reduction boot
$0
mortgage trade-down
Depreciation recapture
$72,000
taxed at 25% if recognized
Tax bill if sold outright
Estimates are directional. Actual exchange rules require a qualified intermediary, 45-day identification window, 180-day closing, and like-kind investment property on both sides. Confirm adjusted basis and depreciation with your tax professional before closing.
How to Use
- Enter the sale price, selling costs, and mortgage payoff for the relinquished property.
- Add the original purchase price, capital improvements, and accumulated depreciation to compute adjusted basis.
- Enter the replacement property purchase price, new loan, and qualified intermediary expenses.
- Set your federal capital gains rate, state rate, and net investment income tax so the deferred tax is specific to your situation.
- Review the minimum replacement price, debt, and cash reinvestment thresholds — falling short triggers taxable boot.
Frequently Asked Questions
What is a 1031 exchange?
A 1031 exchange lets an investor defer federal capital gains tax and depreciation recapture by swapping one investment property for another of like kind. The seller never takes constructive receipt of the proceeds — a qualified intermediary holds the funds between closings.
How do I fully defer tax?
Three tests: (1) the replacement property purchase price must equal or exceed the relinquished sale price, (2) all net cash proceeds must be reinvested, and (3) the debt on the new property must equal or exceed the old debt (or be offset by additional cash). Falling short on any test creates taxable boot.
What is boot?
Boot is the portion of the exchange that becomes taxable. Cash boot is proceeds the investor pockets. Debt boot is the reduction in mortgage liability between properties. Recognized gain equals the lesser of realized gain and total boot.
Does the 25% depreciation recapture rate apply inside the exchange?
A fully deferred 1031 defers both capital gains and depreciation recapture. But any recognized gain is taxed first as depreciation recapture at up to 25% until the recapture amount is exhausted, then at the capital gains rate on the remaining recognized gain.
What are the 45-day and 180-day rules?
The taxpayer has 45 calendar days after closing the relinquished property to identify up to three replacement candidates in writing, and 180 calendar days to close on one of them. Missing either deadline collapses the exchange and the full gain becomes taxable.
Related Calculators
Seller Net Sheet Calculator
Estimate net proceeds from the relinquished sale — the pool of cash the qualified intermediary will hold.
Cap Rate Calculator
Compare property income performance between the relinquished and replacement deals before locking in the swap.
DSCR Calculator
Check whether a replacement property can carry the new debt under a DSCR loan.
Rental Cash Flow Calculator
Model post-exchange rental cash flow on the replacement property before completing the exchange.
Rental Property Calculator
Underwrite the replacement property top to bottom with NOI, cap rate, and cash-on-cash return.
Real Estate Depreciation Calculator
Size the depreciation recapture exposure the 1031 would defer on the relinquished property.
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Next calculator
15-Year vs 30-Year Mortgage Calculator
Compare a 15-year and 30-year mortgage side by side. See payment, total interest, and the cash-flow trade-off between the two terms.