🔄 1031 Exchange Calculator
Calculate how much capital gains tax you can defer with a like-kind 1031 exchange. Includes boot analysis, depreciation recapture, and total tax savings.
🔄
1031 Exchange Analysis
Relinquished property + replacement property details
📤 Relinquished Property (Selling)
After selling costs / commissions
Total depreciation taken over holding period
📥 Replacement Property (Buying)
1031 Exchange Results
Capital Gain
—
Tax Without Exchange
—
Tax WITH Exchange
—
Total Tax Deferred
—
Detailed Breakdown
Adjusted Cost Basis—
Capital Gain (excl. depr.)—
Depreciation Recapture—
Boot (cash/debt relief)—
Exchange Qualifies?—
Total Capital Kept (vs. No Exchange)—
How a 1031 Exchange Works
Under IRC Section 1031, you can defer capital gains tax when you sell an investment property and reinvest in a like-kind replacement property. Rules: 45 days to identify, 180 days to close.
⏱
45-Day ID Rule
Must identify replacement within 45 days
📅
180-Day Close
Must close on replacement within 180 days
💰
No Boot
Receive no cash; replace equal or greater equity
🏗️
Like-Kind Property
Investment real estate → investment real estate
Frequently Asked Questions
What is "boot" in a 1031 exchange?
Boot is any cash or non-like-kind property received in the exchange, or any reduction in mortgage (debt relief). Boot is taxable immediately, even in a 1031 exchange. To fully defer taxes, you must replace all equity AND take on equal or greater debt.
What is depreciation recapture?
Depreciation recapture (Section 1250) is taxed at 25% federal rate on the amount of depreciation you've claimed over the holding period. This is separate from capital gains tax. A 1031 exchange defers this tax too, but it will be owed when you eventually sell without exchanging.
Can I do a 1031 exchange on my primary residence?
No. 1031 exchanges are for investment or business properties only. Your primary residence qualifies for the Section 121 exclusion instead ($250k/$500k capital gains exclusion).