1031 Exchange Calculator
Tax Deferral & Boot Analysis
$
$
yrs
$
$
$
Net Sale Proceeds
$451,000
Cash to Reinvest
$451,000
$
$
$
$
Cash from Exchange
$451,000
+ New Mortgage
$300,000
Total Buying Power
$751,000
%
%
%
Depreciation Recapture Rate
25% (federal max)
Effective Combined Rate
28.8%
💰
Tax Deferral Benefit
Total Taxes Deferred
$72,880
Keep 100% of your equity working for you
Realized Gain
$305,455
Total profit on sale
Deferred Gain
$305,455
Gain rolled forward
Taxable (Boot)
$0
Gain taxed now
Depreciation
$145,455
Recapture deferred
New Basis
$444,545
Replacement property
Equity Preserved
$451,000
Full reinvestment
Full Deferral Achieved!
You’re reinvesting all proceeds and
replacing debt. No taxable boot.
Boot Analysis
Total Boot (Taxable Portion)
$0
Cash Boot (cash taken out)
$0
Mortgage Boot (debt relief not
replaced)
$0
Taxable Gain (lesser of boot or gain)
$0
Tax on Boot
$0
❌ Sell & Pay Taxes
$378,120
Net after taxes
✓ 1031 Exchange
$451,000
Full equity preserved
Tax Bill If Sold Outright (No Exchange)
Total Taxes Owed
$72,880
Depreciation Recapture (25%)
$36,364
Federal Capital Gains (20%)
$32,000
State Tax (5%)
$8,000
NIIT (3.8%)
$6,080
1031 Exchange Timeline
Identify replacement property within 45 days • Complete purchase within 180 days
Full Deferral Requirements
Min. Replacement Value
≥ $651,000
Min. Cash Reinvested
$451,000
Min. New Debt (or cash)
≥ $200,000
