1031 Exchange
Shows what a replacement property has to be to defer all the gain, any boot, and a rough tax on the boot.
Open the 1031 Exchange calculatorStep by step
- 1
Enter the property being sold
Type the sale price, selling costs, loan payoff and adjusted basis after depreciation.
- 2
Enter the replacement
Type the replacement price and the new loan. The cash going in shows below.
- 3
Set tax rates
Under More tax rates, set the federal capital gains rate and the state rate.
- 4
Download the PDF
If you like, pick a client and property in the Client & property menu above the button so the PDF says who it's for. It doesn't change your numbers. Download the 1031 Exchange Estimate PDF with your name, photo and phone on it; it saves to the Results tab.
- 5
Send it to clients
The Share tab has your branded link for this calculator, with buttons to copy, text or email it. Clients can run it there on their own.
Reading the results
With no boot, the top shows all the gain deferred. Otherwise it shows the taxable gain and a rough tax. Below are the equity to reinvest, the replacement price and loan needed to defer it all, cash boot, mortgage boot, and the tax with and without an exchange.
Taxable gain is the smaller of total boot and the gain.
Assumptions
The tax uses one combined federal plus state rate. Depreciation recapture, replacement closing costs and state rules aren't modeled. Deadlines are 45 days to identify and 180 to close, with a qualified intermediary. Estimate, not tax advice.
What the PDF has
The property sold, the replacement, what it takes to defer it all, and boot and tax.
On your branded page
Clients can run this calculator on your branded page, techybroker.com/b/{handle}, under Investing. To download the PDF they give a name and an email or phone. That adds them to your clients, and their runs and downloads show in Activity.
Questions
What is boot?
Value the investor takes out instead of reinvesting: cash left over, or debt paid off that isn't replaced by new debt or added cash.
Can a bigger loan make up for cash taken out?
No. New debt offsets mortgage boot but not cash boot.
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