1031 Exchange Calculator
Calculate capital gains tax deferral, boot, and new basis for a like-kind exchange.
How to Use This Calculator
- 1
Enter the Sale
Input the sale price, original purchase price, improvements, and accumulated depreciation of the property you're selling.
- 2
Enter the Replacement
Input the purchase price and new loan for the replacement property.
- 3
Review Boot & Deferral
See any taxable boot, the deferred gain, and the estimated tax you postpone by exchanging.
Frequently Asked Questions
What is a 1031 exchange?
A 1031 exchange (named after IRC Section 1031) lets US investors defer capital gains tax by selling an investment property and reinvesting the proceeds into a like-kind replacement property. The tax isn't eliminated — it's deferred until you eventually sell without exchanging.
What is 'boot' in a 1031 exchange?
Boot is any value you receive that isn't like-kind property — leftover cash, or debt relief when the new mortgage is smaller than the old one. Boot is taxable in the year of the exchange, which is why most investors aim to buy equal or greater value with equal or greater debt.
What are the 45-day and 180-day deadlines?
You must identify potential replacement properties in writing within 45 days of selling, and close on the replacement within 180 days. Both clocks run concurrently from the sale date and there are no extensions — missing either disqualifies the exchange.
Does a 1031 exchange apply outside the United States?
No. Section 1031 is US federal tax law and applies to US real property held for investment or business use. Other countries have their own rollover or deferral rules — consult a local tax advisor for non-US properties.
1031 Like-Kind Exchange
Defer capital gains taxes by exchanging one investment property for another. The 1031 exchange is a wealth-building tool enabling investors to reinvest gross proceeds.
Strict timelines apply: 45 days to identify a replacement property and 180 days to close. Boot (cash or debt relief) is taxable.
Deferred Gain
Tax liability postponed to the future.
Boot
Taxable cash or debt reduction received.
Adjusted Basis
Cost basis carried forward to the new property.