Current Property
Replacement Property
Tax Saved
$30,870
Tax Without Exchange
$48,020
Boot Received
$50,000
Tax on Boot
$17,150
Exchange Requirements
Exchange Result
Key Timelines
What is a 1031 exchange?
A 1031 exchange (also called a like-kind exchange) lets you sell an investment property and reinvest the proceeds into a new investment property while deferring capital gains tax. The name comes from Section 1031 of the Internal Revenue Code. Both the property you sell and the one you buy must be held for investment or business use. Your primary home does not qualify.
What is boot in a 1031 exchange?
Boot is any value you receive in a 1031 exchange that is not like-kind property. This includes cash you take out of the deal and mortgage relief (if your new mortgage is smaller than the old one). Boot is taxable. To avoid paying any tax, the replacement property must cost at least as much as the one you sold, and your new mortgage must be equal to or greater than the old one.
What are the 1031 exchange timelines?
There are two strict deadlines. First, within 45 days of selling your property, you must identify up to three potential replacement properties in writing (the identification period). Second, you must close on the replacement property within 180 days of the sale (the exchange period). These deadlines cannot be extended, even if they fall on weekends or holidays. A qualified intermediary must hold the sale proceeds during this time.
Note: 1031 exchanges have strict rules and deadlines. You must use a qualified intermediary and cannot touch the sale proceeds yourself. This calculator provides estimates only. Consult a tax professional and a qualified intermediary before starting an exchange.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS — Like-Kind Exchanges Under IRC Section 1031
- IRS Publication 544 — Sales and Other Dispositions of Assets
- IRS Topic 409 — Capital Gains and Losses
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.