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Like Kind Exchange Boot Calculator

Boot (cash/debt relief) in exchange triggers partial taxable gain.

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Total boot

$600,000

Cash boot

$300,000

Debt boot

$300,000

How the math works

Cash boot = cash received. Debt boot = max(0, relinquished − replacement debt). Total = sum.

$300k cash + max(0, $6M − $5.7M) = $300k cash + $300k debt = $600k total boot (taxable).

How to Use

  1. Enter relinquished property value.
  2. Enter replacement property value.
  3. Enter cash received (boot).
  4. Enter relinquished debt.
  5. Enter replacement debt.
  6. Read taxable boot.

Frequently Asked Questions

Boot types?

Cash boot: unused cash from exchange. Debt boot: debt relief (relinquished debt > replacement debt). Both trigger taxable gain up to total exchange gain. Limits tax liability to boot received.

Avoiding boot?

Up-sizing: replacement property value ≥ relinquished value. Debt replacement: maintain or increase debt. 'Buy up' strategy: add cash to exchange. Partial exchanges always trigger proportional boot.

Planning?

Structure exchange to eliminate boot when possible. Use boot for debt paydown or property improvement post-close. Document boot in exchange agreement. Qualified Intermediary should model boot before closing. Last-minute boot often costly.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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