Replacement Property Value Calculator

To fully defer gains in a 1031 exchange, replacement property must satisfy the equal-or-up rules: replacement value ≥ relinquished sale price and replacement debt ≥ relinquished debt. This calculator sizes the minimum targets for both, plus the new debt required given how much cash the QI is holding.

Relinquished sale price

Relinquished debt paid off

Exchange fees

Cash held by QI (after debt)

Net to reinvest

Min replacement value

$648,500

To fully defer

Min replacement debt

$280,000

Cash available from QI

$370,000

Min new debt to take

$278,500

How the math works

To fully defer 1031 gains, replacement value must equal or exceed relinquished sale price (minus exchange fees), and you must take on at least the same amount of debt. The QI holds proceeds; you direct them into the replacement.

45-day identification window and 180-day exchange completion window are strict — miss either and the entire exchange fails to qualify.

How to Use

Enter relinquished sale price and debt paid off.
Enter exchange fees and cash held by QI.
Read minimum replacement value, debt, cash available, and additional debt to take.

Frequently Asked Questions

What if I trade down?

The shortfall (in value or debt) becomes boot and triggers gain recognition up to deferred gain limit. Common scenario when motivated to take cash off the table.

Three-property rule?

Identify up to 3 replacement properties (any value) — buy any combination. Or identify any number under 200% of relinquished value. Or 95% rule (any number, but must close on 95%).