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1031 Exchange Tax Deferral Calculator

1031 Exchange Tax Deferral Calculator. Estimate realized gain, boot recognized, potential and qualified deferred gain, current taxable gain, tax, and replacement basis for a like-kind real-estate exchange scenario.

Inputs

Real Estate & Rental Property inputs

Choose the tax year for the exchange and tax-rate assumptions.

Range: 0–100,000,000 $

Enter gross consideration for the relinquished property.

Range: 0–100,000,000 $

Enter adjusted basis after documented improvements, depreciation, and other basis adjustments.

Range: 0–100,000,000 $

Enter selling costs that reduce amount realized, such as commissions and transfer costs included in your basis worksheet.

Range: 0–100,000,000 $

Enter cash or other non-like-kind property received in the exchange.

Range: 0–100,000,000 $

Enter net debt relief treated as boot under your exchange worksheet; verify liabilities and replacement debt separately.

Range: 0–100,000,000 $

Enter the purchase price or cost basis starting point for the replacement property.

Range: 0–1 0 or 1

Enter 1 when the transaction meets the qualification assumptions you are modeling, or 0 when you want to model a fully taxable sale.

Range: 0–100 %

Enter the rate used for the simplified current-tax estimate.

Result

Deferred gain after qualification factor
130,000.00
Realized gain after selling costs
180,000.00
Current recognized gain
50,000.00
Estimated replacement property basis
420,000.00
Estimate
Estimated current tax
7,500.00
Potential deferred gain
130,000.00
Gain recognized from boot
50,000.00
Total boot received or treated as boot
50,000.00
How to interpret this result
Realized gain subtracts selling costs and adjusted basis from sale price. Boot is the entered cash, non-like-kind property, and net debt relief; qualified exchange assumptions defer the gain above recognized boot, while a zero qualification factor models a fully taxable sale.
Applicability and limits
Verify like-kind real-property use, ownership, qualified intermediary, identification and replacement deadlines, debt relief, boot classification, depreciation recapture, partnership interests, related-party rules, basis records, and state tax. This is not a Form 8824 or complete federal gain-recognition calculation.
Calculation basis
Realized gain = max(sale price − selling costs − adjusted basis, 0). Total boot = cash/other boot + net debt relief. Recognized boot gain = min(realized gain, total boot). Potential deferred gain = max(realized gain − recognized boot gain, 0). Deferred gain = potential deferred gain × qualification factor. Recognized gain = realized gain − deferred gain. Current tax = recognized gain × supplied rate. Replacement basis = max(replacement cost − deferred gain, 0).

Formula

Calculation logic

Formula definitions and substituted values.

What to check

  • An investor enters tax year, sale price, adjusted basis, selling costs, boot, replacement cost, rate, and an exchange-qualification assumption to estimate a 1031 planning result.
  • Use it before selling or acquiring replacement real estate to identify gain, boot, and records that require review.
  • Verify like-kind real-property use, ownership, qualified intermediary, identification and replacement deadlines, debt relief, boot classification, depreciation recapture, partnership interests, related-party rules, basis records, and state tax. This is not a Form 8824 or complete federal gain-recognition calculation.

Related calculators

Verify like-kind real-property use, ownership, qualified intermediary, identification and replacement deadlines, debt relief, boot classification, depreciation recapture, partnership interests, related-party rules, basis records, and state tax. This is not a Form 8824 or complete federal gain-recognition calculation.