Reverse 1031 Exchange Cost Calculator

Reverse 1031 buys first. This calculator sizes cost.

Replacement property value

QI fees

EAT cost

Bridge financing cost

Relinquished sale price

Total exchange cost

$197,000

Net sale proceeds (for exchange)

$4,603,000

Boot risk if short

$397,000

How the math works

Total cost = QI + EAT + bridge. Net proceeds = sale − cost. Boot risk = replacement − net proceeds.

$5M replacement, $4.8M sale, $197k total exchange cost. Net $4.6M. Boot risk $400k (gap between replacement and available). Plan carefully to avoid boot tax.

How to Use

Enter replacement property value.
Enter QI fees.
Enter EAT (exchange accommodation titleholder) cost.
Enter bridge financing cost.
Enter relinquished sale price.
Read total exchange cost.

Frequently Asked Questions

Reverse vs forward?

Forward: sell first, then buy (45-180 day window). Reverse: buy first, sell after. Reverse requires EAT (third party holds title temporarily). More complex, more expensive, but enables purchase without losing target property.

Timing?

EAT holds replacement property up to 180 days. Taxpayer must close sale of relinquished within that window. If not: exchange fails, full tax due. Tight timing requires pre-arranged sale or strong market for relinquished property.

Cost premium?

QI fees: $5-15k (same as forward). EAT fees: $15-50k additional. Bridge financing: 8-15% rate on acquisition bridge. Total reverse cost: $30k-$100k above forward 1031. Justified only when forward timeline doesn't work.