1031 Exchange Calculator

A 1031 exchange is one of the most powerful tools in US real estate: sell an investment property, reinvest the proceeds into a like-kind replacement, and defer the capital gains tax. The catch is the rules are strict — boot is taxable, depreciation comes back as recapture, and the clocks start the day you close.

The 1031 Exchange Calculator walks from your relinquished property (sale price, basis, accumulated depreciation, loan) through the replacement (price, acquisition costs, new loan) to realized gain, recognized (taxable) gain, deferred gain and the tax you owe now versus later. It models cash and debt boot, depreciation recapture, the 45/180-day deadlines, and the 3-property / 200% / 95% identification rules. Everything updates live.

• Gain waterfall: Amount realized, adjusted basis, total gain, recognized gain and deferred gain.
• Boot modeling: Cash boot (equity pulled out) and debt relief boot from loan downsizing.
• Depreciation recapture: Unrecaptured Section 1250 gain taxed at its own rate, separated from LTCG.
• Tax now vs deferred: Current tax due and tax deferred to the future.
• Deadlines: 45-day identification and 180-day exchange dates from your closing date.
• Identification rules: 3-property, 200% and 95% rule checks against the properties you list.
• Equity flow: Equity from sale versus cash needed for the replacement.
• Export: CSV, JSON or plain text of the full exchange model.

1. Relinquished property. Sale price, selling costs, original purchase, improvements, accumulated depreciation and existing loan.
2. Replacement property. Purchase price, acquisition costs and new loan amount.
3. Tax rates. Federal LTCG, depreciation recapture and state rates.
4. Boot. Any cash equity you pull out; the loan difference is debt boot automatically.
5. Closing date. Drives the 45- and 180-day deadlines.
6. Identify. Add the replacement properties you are considering to test the identification rules.
7. Read & export. Review the waterfall, tax and rules, then export.

Example 1 — Full deferral. $600k sale, $100k basis, $200k old loan → $500k replacement with $200k new loan and no cash out: zero boot, 100% deferred.

Example 2 — Cash boot. Pull $50k of equity out: $50k recognized, taxed now, rest deferred.

Example 3 — Debt relief. Old $300k loan, new $200k loan: $100k debt boot becomes taxable even with no cash taken.

Example 4 — Recapture. $120k accumulated depreciation is taxed at the recapture rate first, then remaining gain at LTCG.

Example 5 — 200% rule. Identify four properties whose total value is under 200% of the relinquished value and the exchange still qualifies.

• Defer, don’t pay: See exactly how much tax you avoid by reinvesting.
• Boot clarity: Cash and debt relief shown separately so nothing surprises you.
• Recapture handled: The 25% recapture bucket is isolated correctly.
• Deadline safety: Both statutory dates computed from your close.
• Rule checks: Know whether your identification list qualifies before you commit.
• Export the model: Hand it to your intermediary or CPA.
• Private: No account, no upload, nothing stored.