A 1031 exchange lets an investor sell one investment property and buy another without paying capital gains tax at the sale, provided the replacement is identified within 45 days and closed within 180, and the proceeds go through a qualified intermediary. The calculator estimates the tax deferred and the timeline.
Calculate your tax-deferred exchange requirements, boot exposure, and potential tax savings. Plan your like-kind exchange to maximize wealth preservation.
1031 Exchange Rules
Input sale price, original basis, improvements, depreciation, and existing mortgage for the property you're selling.
Enter the purchase price, new mortgage, and closing costs for your replacement property.
Get instant calculations for tax deferral, boot exposure, and critical 45-day and 180-day deadlines.
The 1031 exchange is one of the most powerful wealth-building tools available to real estate investors. By deferring capital gains taxes when selling investment property, you can reinvest 100% of your equity into a larger or more profitable property. Our free 1031 exchange calculator helps you plan your exchange by calculating tax deferral, identifying boot exposure, and tracking critical deadlines.
Many exchanges fail due to preventable errors. The most common include missing the 45-day identification deadline, receiving cash boot accidentally, reducing mortgage debt without proper planning, and not using a Qualified Intermediary from the start. This calculator helps you identify potential boot issues before they become costly problems, showing exactly what replacement property value and debt level you need for full deferral.
Strategic investors use 1031 exchanges repeatedly throughout their careers, continually deferring taxes while upgrading to larger, more profitable properties. Some investors even hold until death, when heirs receive a stepped-up basis and all deferred gains are eliminated. Whether you're doing your first exchange or your tenth, proper planning with accurate calculations is essential for maximizing your tax benefits.
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Key facts
Tax deferred ≈ depreciation taken × 25% (recapture) + remaining gain × the capital gains rate (15% or 20% federal, plus 3.8% net investment income tax and state tax where they apply). Gain = sale price − selling costs − adjusted basis.
About $65,000 of federal tax deferred, before state tax and the net investment income tax. The replacement must be identified within 45 days and closed within 180.
From the day the relinquished property closes, the investor has 45 calendar days to identify replacement property in writing to the qualified intermediary and 180 calendar days to close on it. Both clocks run at once, weekends and holidays included, and cannot be extended except by a federally declared disaster.
Boot is anything received in the exchange that is not like-kind property: cash left over, debt relief when the new mortgage is smaller than the old one, or personal property. Boot is taxable in the year of the exchange up to the amount of the gain, which is why the replacement should cost at least as much and carry at least as much debt.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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