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1031 Exchange

1031 Exchange Calculator

How much gain a like-kind exchange defers, what boot gets recognized, and the basis you carry into the replacement, with every step of the math in the open.

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Your tax rates

Only drives the “sell vs exchange” comparison and the tax on any recognized boot, not the deferred number.

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Federal brackets:
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Adds 3.8% on the gain

Simplified federal model: QI requirements, related-party limits, and state conformity are on you and your CPA. Deadlines are calendar days with no extensions.

Gain deferred
Realized gain (amount realized − adjusted basis)–
Boot received (cash + mortgage)–
Recognized (taxable) gain–
Estimated tax on recognized boot–
Deferred gain–
Carryover basis in replacement–
Depreciation-recapture note–
Napkin test: will it fully defer?

To defer every dollar you must (1) buy equal-or-greater value, (2) reinvest all your net equity, and (3) replace all the debt, or add cash to offset it. Each shortfall below becomes taxable boot.

Sell outright vs. 1031 exchange

The persuasion number: tax due today if you just sell, versus tax on the recognized boot if you exchange, at your rates above.

If you sell
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tax due now
If you exchange
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tax on boot
Tax deferred by exchanging
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Deadline tracker

Calendar days from the relinquished closing date, with no weekends, holidays, or extensions.

Day 45 · identify
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Day 180 · close
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Identify replacements in writing by day 45 under one rule: 3-property (up to three, any value), 200% (any number, combined value ≤ 200% of what you sold), or 95% (any number, but you must close on ≥ 95% of the value identified).

What if the replacement price is different?

Same sale, recomputed at nearby replacement prices. Trading down creates boot; watch the recognized column.

Replacement priceDeferred · recognized
Next step

Estimate what you’d net WITHOUT exchanging in the seller net sheet, or underwrite the replacement in the cash flow & DSCR calculator. Browse all the calculators.

Related tools: Seller Net Sheet · Investment Growth · Cap Rate · all calculators
Market data: 2,300+ rental market grades · Best cash-flow rental markets 2026

Common questions

What does a 1031 exchange defer?

Federal (and usually state) tax on the realized gain from selling investment real estate, when you buy like-kind replacement property through a qualified intermediary within the deadlines. The gain doesn’t vanish; it carries into the replacement through a reduced basis, which this calculator shows.

What is boot?

Anything you take off the table instead of reinvesting: cash you keep (equity not reinvested) and net debt relief you don’t replace with new debt or fresh cash. Boot is taxable up to the realized gain: that’s the recognized line here.

How do I fully defer the gain?

Two rules of thumb this math makes explicit: buy replacement property of equal or greater value, and reinvest all of the net equity (replacing the debt or adding cash). Do both and the boot rows go to zero.

What about depreciation recapture?

Recognized gain is taxed as unrecaptured §1250 gain first (up to the total depreciation you took, at a maximum 25% federal rate) before capital-gain rates apply. A full deferral postpones recapture too; this page flags how much of any recognized gain is recapture-subject.

What is the napkin test?

A quick three-part check for a full deferral: (1) buy replacement property worth at least your net sale price, (2) reinvest all of your net equity, and (3) replace all the debt you paid off, or add cash to cover it. The calculator runs all three live and shows the exact boot each shortfall creates.

How much tax do I save by exchanging instead of selling?

The calculator shows both side by side: the tax you’d owe on the full gain if you sold outright (§1250 recapture at 25%, long-term capital gains at 0/15/20%, the 3.8% NIIT, and your state rate) versus the tax on only the recognized boot if you exchange. The difference is the tax you defer.

What are the 45-day and 180-day deadlines?

From the day your relinquished property closes, you have 45 calendar days to identify replacement property in writing and 180 days total to close on it, with no weekends, holidays, or extensions. Identification follows the 3-property, 200%, or 95% rule. The deadline tracker prints both dates and the days remaining.