FullCalculator

1031 Exchange Calculator

Tax Deferral Estimate

Calculate potential tax savings from a 1031 exchange

$
$
$
$
%
%

Boot Calculator

Calculate taxable boot in a 1031 exchange

$
$
$
$
%

Formula

Tax Deferred = (Capital Gain x CG Rate) + (Depreciation Recapture x Recapture Rate)

Frequently Asked Questions

What is a 1031 exchange?
A 1031 exchange (named after IRS Section 1031) allows real estate investors to defer capital gains taxes by selling an investment property and reinvesting the proceeds into a like-kind replacement property within specific time frames (45 days to identify, 180 days to close).
What is boot in a 1031 exchange?
Boot is any value received in a 1031 exchange that is not like-kind property. This includes cash received, reduction in mortgage liability, or personal property. Boot is taxable in the year of the exchange.
What properties qualify for a 1031 exchange?
Properties must be held for investment or productive use in a trade or business. This includes rental properties, commercial buildings, and vacant land. Personal residences and properties held primarily for sale (flips) do not qualify.

You may also need