CPA-led 1031 exchange guide
1031 Exchange Tax Calculator
This 1031 exchange tax calculator is a free, plain-English estimator for the numbers behind a Section 1031 property sale: realized gain, recognized gain, boot exposure, and net cash received. Enter your figures in the 1031 exchange calculator below for a directional tax calculation, then read what a CPA-led advisor reviews before the relinquished property closes. Educational only — your actual tax rate, individual circumstances, and the specific properties involved will change the answer.
What this 1031 exchange tax calculator does
The estimator below uses your sale price, adjusted basis, debt payoff, replacement purchase, and replacement debt to model the tax calculation a CPA runs on a 1031 exchange. It returns an estimated realized gain, a likely boot figure (which becomes recognized gain in the year of the exchange), and a directional view of net cash received. It is not a tax filing — every number depends on individual circumstances the calculator cannot see.
The 180 days that anchor the calculation
Every 1031 exchange tax calculator assumes the deal closes inside the 180-day window. If replacement property doesn't close within 180 days of the relinquished sale, the deferral collapses and the full realized gain becomes recognized gain in that tax year — at your full tax rate plus state, depreciation recapture, and NIIT where they apply.
Inputs a real CPA review goes beyond
A 1031 exchange calculator is a starting point. A real tax calculation factors in items this page cannot ask about.
- Original cost plus capitalized improvements
- Cumulative depreciation taken (Section 1250 recapture exposure)
- Closing costs and seller credits on both properties involved
- Federal long-term capital gains tax rate (0%, 15%, or 20%)
- State capital gains rate and clawback rules (California's FTB 3840)
- Net investment income tax exposure (3.8%)
- Debt being paid off and debt being placed on replacement
- Net cash received versus cash reinvested
- Entity-level issues (LLCs, partnerships, drop-and-swap timing)
How to read net cash received and recognized gain
If the estimator shows meaningful boot, that boot is the recognized gain you'd report this year — taxed at your applicable rate (capital gains, recapture, or both depending on the source). Net cash received from the property sale that isn't reinvested into the replacement is the most common source of recognized gain in an otherwise deferred 1031 exchange.
How to use the result
Treat the output as a directional check. If realized gain is large and boot looks possible, Brandon's CPA-led planning can help surface questions before closing, while i1031 separately handles Qualified Intermediary execution. Confirm transaction-specific conclusions with your own tax and legal advisors.
Important disclaimer
This 1031 exchange tax calculator is educational only. It is not tax advice, legal advice, or accounting advice. Real tax outcomes depend on facts the estimator does not capture, and rates and rules change. Do not rely on this output to plan an exchange — consult a qualified tax professional first.
Frequently Asked Questions
Does this calculator compute my actual tax?
No. It estimates realized gain and likely boot at a high level. Actual tax depends on your federal rate, state rate, depreciation history, NIIT exposure, and entity treatment.
Is the output tax advice?
No. The page is educational only. Always confirm any tax-impacting decision with your own CPA or tax attorney.
How accurate is the boot estimate?
It's a directional check. Closing-cost treatment, seller credits, and exchange-expense categorization can shift the result meaningfully and require a CPA review.
What if my estimate shows large boot?
Involve Brandon for CPA-led planning before closing and coordinate the separate Qualified Intermediary workflow with i1031. Different replacement economics or a new-cash contribution may change the result.
Quick 1031 deferral estimator
Educational only — not tax advice. All figures in US dollars.
Educational estimate only. Not tax, legal, or accounting advice. Consult your CPA before acting.