1031 Exchange Calculator
Tax Deferral & Boot Analysis
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$
yrs
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$
$
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
