Calculate tax-deferred gain in 1031 like-kind exchanges with boot analysis, timeline requirements, and replacement property targets.
Estimate how much gain from disposing of business or investment real estate may be recognized now and how much may remain deferred after acquiring replacement property. The calculator compares sale proceeds, adjusted basis, transaction costs, debt, and replacement-property funding to identify potential cash or debt-relief boot. It also presents replacement targets and the statutory exchange timeline. A common surprise is that buying property worth at least the relinquished property may not be sufficient: retaining net cash or failing to offset debt relief can still produce recognized gain.
The calculation begins with the relinquished property's amount realized and adjusted tax basis to estimate realized gain. It then measures cash retained and net liability relief against replacement-property value, cash invested, and replacement debt to estimate boot. Recognized gain cannot exceed realized gain. The balance is treated as deferred gain, which reduces the replacement property's tax basis rather than disappearing.
To indicate what may support full deferral, the tool presents targets for replacement value and reinvested equity instead of treating purchase price as the only consideration. Its timeline section applies the 45-day identification period and the exchange period ending on the earlier of 180 days after transfer or the due date, including extensions, of the federal return for the transfer year.
No. Replacement value is only part of the analysis. Cash retained from the relinquished property or net debt relief can be boot even when the replacement property's price meets a value target. Additional cash contributed to the replacement purchase may offset reduced borrowing, but the complete transaction and liabilities must be evaluated together.
Not as a general eligibility determination. Section 1031 currently applies to qualifying real property held for productive use in a trade or business or for investment. Stocks, partnership interests, and equipment do not qualify. A residence or vacation property may require separate analysis of its actual use, holding purpose, and any interaction with the home-sale exclusion.
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