1031 Exchange Calculator

Example scenario

Selling at $800,000 with $450,000 basis realizes $350,000 gain.

Sample inputs

Sale price of relinquished property ($): 800000
Adjusted basis ($): 450000
Replacement property cost ($): 850000
Estimated capital gains tax rate (%): 20

Sample results

Realized gain ($): See calculator result
Deferred gain ($): See calculator result
Taxable boot ($): See calculator result

Common mistakes

Misunderstanding: What is boot in a 1031 exchange — Boot is any non-like-kind value received — cash proceeds, debt relief exceeding replacement debt, or personal property.
Misunderstanding: What are the 1031 exchange deadlines — You have 45 days from closing to identify replacement properties (up to 3 properties or 200% rule) and 180 days total to close on the replacement.
Using default inputs without adjusting them to match your 1031 exchange calculator scenario.
Treating this estimate as a final number without checking real estate assumptions that apply to your situation.

Decision guide

Trust the projection more when

Enter the sale price of the property you are selling (relinquished property)
Input your adjusted tax basis (original cost + improvements − depreciation taken)
Enter the cost of the replacement property you plan to acquire

Revisit inputs when

Set your estimated combined federal and state capital gains tax rate
Review realized gain, deferred gain, taxable boot, and estimated tax savings
Consult a qualified intermediary and tax advisor before initiating an exchange
Your jurisdiction, tax status, or contract terms differ from the example.

A 1031 like-kind exchange allows real estate investors to defer capital gains taxes when selling an investment property and reinvesting the proceeds into a replacement property of equal or greater value. Section 1031 of the Internal Revenue Code is one of the most powerful wealth-building tools in US real estate — but strict timing, identification, and value rules apply. This calculator estimates deferral, boot, and tax savings for planning purposes.

How to use this calculator

Enter the sale price of the property you are selling (relinquished property).
Input your adjusted tax basis (original cost + improvements − depreciation taken).
Enter the cost of the replacement property you plan to acquire.
Set your estimated combined federal and state capital gains tax rate.
Review realized gain, deferred gain, taxable boot, and estimated tax savings.
Consult a qualified intermediary and tax advisor before initiating an exchange.

Formula

Realized gain = Sale price − Adjusted basis. Boot (taxable cash not reinvested) = max(0, Sale price − Replacement property cost). Deferred gain = max(0, Realized gain − Boot). Estimated tax deferred = Deferred gain × Tax rate. Full deferral requires replacement value ≥ sale price (equal or up exchange).

Example

Selling at $800,000 with $450,000 basis realizes $350,000 gain. Buying a $850,000 replacement with no cash taken out defers the full $350,000 gain — saving approximately $70,000 at a 20% rate.

Frequently asked questions

What is boot in a 1031 exchange?

Boot is any non-like-kind value received — cash proceeds, debt relief exceeding replacement debt, or personal property. Boot is taxable up to the realized gain, even in an otherwise qualifying exchange.

What are the 1031 exchange deadlines?

You have 45 days from closing to identify replacement properties (up to 3 properties or 200% rule) and 180 days total to close on the replacement. Missing either deadline disqualifies the exchange.

Can I do a partial 1031 exchange?

Yes. You can defer gain on the portion reinvested while paying tax on boot (cash received or lower replacement value). This calculator shows the split between deferred and taxable amounts.

Does this include depreciation recapture?

No. This is a simplified estimate. Depreciation recapture (taxed at up to 25%) and state taxes may apply separately. Work with a CPA for a complete tax projection.