1031 Exchange Calculator
Estimate capital gains taxes deferred through a 1031 like-kind exchange. See tax savings, boot amounts, and minimum reinvestment requirements instantly.
How It Works
Estimates the capital gains taxes deferred when selling an investment property and reinvesting the proceeds into a 'like-kind' property under IRS Section 1031.
Formula
Recognized Gain = Min(Realized Gain, Boot Received)
Tax Deferred = (Realized Gain - Recognized Gain) × Tax Rate
Realized Gain is the profit from the sale. 'Boot' is any cash or non-like-kind property received. You only pay taxes on the Boot.
Worked Example
Deferring Taxes on a $500k Property Sale
- Original Purchase Price (Basis): $300,000
- Sale Price: $500,000
- Realized Gain: $500,000 - $300,000 = $200,000
- You buy a new property for $550,000 (No boot received).
- Recognized Gain = $0.
- Assuming a 20% tax rate, you deferred $40,000 in taxes.
Common Mistakes
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Receiving 'Boot' without knowing it
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If your new mortgage is smaller than your old mortgage, the difference is 'mortgage boot' and is taxable.
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Missing the strict deadlines
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You have exactly 45 days to identify a new property and 180 days to close.
Frequently Asked Questions
Related Guide & Instructions
2026-07-10
1031 Exchange Rules: How to Defer Capital Gains Tax in Real Estate
Learn the strict IRS rules, timelines, and calculations behind a 1031 exchange to defer thousands in capital gains taxes when selling investment properties.
Read full guide →Related Calculators
DisclaimerThe results provided by this calculator are estimates and for informational purposes only. They do not constitute financial, legal, or professional advice. Please consult with a qualified professional for your specific needs.