🔀 Tax
1031 Exchange
Calculator
Model your 1031 like-kind exchange — see exactly how much tax you defer, the minimum replacement property value required, and boot calculations.
Section 1031 allows investors to defer capital gains taxes when selling an investment property by reinvesting proceeds into a like-kind replacement property. You must identify a replacement within 45 days and close within 180 days. Boot (cash not reinvested) is taxable.
🏠 Property Being Sold (Relinquished Property)
Total Tax Deferred via 1031
$0
Capital gains + recapture + NIIT
Adjusted Basis
$0
Purchase + improvements - depreciation
Realized Gain
$0
Sale price - adjusted basis - costs
Net Equity
$0
To reinvest in replacement
Min. Replacement Value
$0
To defer 100% of taxes
Tax Breakdown — Sell Now vs 1031
Depreciation Recapture Tax (25%)—
Long-Term Capital Gains Tax—
State Capital Gains Tax—
Net Investment Income Tax (NIIT)—
TOTAL TAX IF SOLD OUTRIGHT—
Tax via 1031 Exchange$0 deferred
Capital Available to Reinvest—
⏱️ Key 1031 Deadlines
Close on relinquished propertyDay 0
Identify replacement property (45-day rule)Day 45
Close on replacement property (180-day rule)Day 180
Qualified Intermediary requiredBefore closing
⚠️ Important: 1031 exchanges have strict rules. You must use a Qualified Intermediary (QI), cannot touch the proceeds, and must meet the 45/180-day deadlines. This calculator is for estimation only. Always work with a 1031 exchange specialist and tax attorney for actual transactions.
Reinvest your 1031 proceeds
Browse replacement properties that qualify for 1031 exchanges with verified income data.
⚠ Sponsored links. We may earn a commission at no cost to you. This is not tax or legal advice.
Frequently Asked Questions
What is a 1031 exchange? ▾
A 1031 exchange (Section 1031 of the IRS tax code) allows real estate investors to defer capital gains taxes when selling an investment property by reinvesting the proceeds into a like-kind replacement property. The taxes aren't eliminated — they're deferred until you eventually sell without exchanging. Investors can chain multiple 1031 exchanges throughout their lifetime and potentially eliminate the taxes entirely through a step-up in basis at death.
What are the 1031 exchange rules? ▾
Key rules: (1) Both properties must be held for investment or business use — no primary residences or dealer property; (2) You must identify up to 3 replacement properties within 45 days of closing; (3) You must close on the replacement within 180 days; (4) A Qualified Intermediary must hold proceeds — you cannot touch the money; (5) To defer 100% of tax, you must reinvest all equity and buy equal or greater total value. Any cash taken out ('boot') is taxable.
What is boot in a 1031 exchange? ▾
Boot is any value received in an exchange that isn't like-kind property — typically cash. If you sell for $500k with $200k equity but only buy a $450k replacement property (only reinvesting $150k of equity), the $50k difference is 'boot' and is taxable. Mortgage relief can also create boot — if your new mortgage is lower than the old one, the difference is treated as boot. Minimize boot by replacing 100% of equity and debt.