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1031 Exchange Calculator

Estimate potential tax deferral, boot, depreciation recapture, NIIT, and 45/180-day timing for a standard delayed 1031 exchange scenario.

The calculator is a planning tool. It does not determine whether an exchange qualifies under IRS rules, whether a property is like-kind, whether constructive receipt occurred, whether a Qualified Intermediary was properly used, or whether the exchange should be completed.

Reviewed by ArvCalc Editorial Team

Last updated: May 2026

This calculator and guide are designed for educational 1031 exchange planning. It estimates potential tax deferral, boot, depreciation recapture, federal LTCG, simplified state capital gains tax, simplified NIIT, 45-day identification timing, and 180-day exchange timing under user-entered assumptions. Results are planning estimates only. They are not IRS eligibility determinations, tax advice, legal advice, Qualified Intermediary advice, appraisal advice, investment advice, or a substitute for CPA, attorney, QI, or tax-professional review.

On this page

1031 Exchange
—fill in fields below

Relinquished Property (Sale)

$
%
$
$
$
$
$

Replacement Property (Purchase)

$

For full deferral: must be ≥ your net sale proceeds

$
$

Tax Profile

%
$
NIIT 3.8%: enter AGI to check

Exchange Timing

45-Day Deadline

Aug 3, 2026

Identify replacement in writing

180-Day Deadline

Dec 16, 2026

Close on replacement property

Both deadlines are calendar days — no business-day extensions. Missing the 45-day deadline may cause the exchange to fail even within the 180-day window.

Enter sale price, replacement price,
and original purchase price to begin.

Saved Scenarios

0/20 saved

No saved scenarios yet

Fill in the calculator above, then save your first scenario.

Overview

A 1031 exchange allows certain real-property investors to defer recognition of gain when exchanging business or investment real property for like-kind business or investment real property. The tax is generally deferred into the replacement property; it is not automatically eliminated.

This calculator estimates the potential tax difference between a straight sale and a modeled 1031 exchange. It can also estimate taxable boot, depreciation recapture, simplified NIIT, simplified state tax, replacement-property shortfall, mortgage boot, trade-down boot, and key exchange dates.

The calculator does not verify IRS eligibility. A valid 1031 exchange depends on facts that are outside this model, including property use, like-kind classification, Qualified Intermediary structure, written identification, timing, documentation, constructive receipt, related-party rules, and tax reporting.

Use this calculator for planning and scenario comparison only. Before initiating an exchange, verify the structure with a qualified CPA, 1031 attorney, and Qualified Intermediary.

Common Questions This Calculator Can Help Explore

How much tax might be deferred compared with a straight sale?

The calculator estimates potential tax deferral based on your sale price, basis, depreciation, and tax assumptions. Enter your numbers above for a planning estimate.

How much taxable boot might appear if the replacement is smaller?

If replacement value or debt is lower than the relinquished property, boot may be estimated. The calculator models cash boot, mortgage boot, and trade-down boot.

What are the 45-day and 180-day dates based on the sale date?

Enter the closing date of the relinquished property sale to see estimated identification and exchange deadlines. Confirm actual deadlines with the Qualified Intermediary.

How do depreciation recapture, LTCG, state tax, and NIIT affect the result?

The calculator estimates each tax layer separately. State and NIIT calculations are simplified. Verify with a qualified tax professional.

How does a partial exchange compare with a full exchange?

If boot is present, some tax may be due immediately. The calculator compares full sale tax with modeled exchange tax to show the difference.

Can I live in a 1031 exchange property?

Replacement property generally must be held for investment or business use. Mixed-use and conversion scenarios are fact-specific and require professional tax review.

The answers are estimates based on the inputs entered. They are not tax advice, legal advice, IRS determinations, or professional exchange review.

How to Use the 1031 Exchange Calculator

1

Enter relinquished property details

Enter sale price, selling costs, original purchase price, original closing costs, capital improvements, years held, mortgage payoff, and depreciation taken. If you have actual depreciation from tax records, use that instead of relying on simplified auto-depreciation.

2

Enter replacement property details

Enter replacement property price, new mortgage amount, and any cash boot received. The model uses these inputs to estimate whether the exchange appears to achieve full or partial deferral under the selected assumptions.

3

Enter tax profile assumptions

Enter filing status, federal LTCG bracket, state capital gains rate, and AGI if modeling NIIT. These are simplified inputs. Actual tax treatment depends on taxable income, depreciation, state rules, entity structure, and individual circumstances.

4

Enter sale closing date

Enter the relinquished property sale closing date. The calculator estimates the 45-day identification deadline and 180-day exchange deadline.

5

Review modeled outputs

Review modeled tax deferred, total tax if sold, tax if exchanged, boot, depreciation recapture, NIIT estimate, state tax estimate, deadlines, and model-based status label. The status label is not an IRS determination or tax opinion. Final eligibility requires professional review.

Pro Tips

Use actual depreciation from tax records

Auto-depreciation is a planning estimate. It may not reflect land allocation, cost segregation, bonus depreciation, prior depreciation, or commercial-property schedules.

Treat state and NIIT as simplified

State capital gains tax is applied as a flat rate. NIIT is simplified and may overstate tax. Verify both with a qualified tax professional.

Do not rely on the status label alone

The status label does not verify QI setup, like-kind classification, identification rules, constructive receipt, or documentation. Confirm with CPA, attorney, and QI.

Use this calculator before engaging professionals

But do not initiate an exchange without CPA, attorney, and QI review.

Inputs and Outputs

InputRequiredDefault
Relinquished Property
Sale PriceRequiredRequired
Selling Costs %OptionalEnter commission + closing
Original Purchase PriceRequiredRequired
Original Closing CostsOptional0
Capital ImprovementsOptional0
Years HeldOptionalFor auto-depreciation
Mortgage Payoff at SaleOptional0 (all-cash)
Total Depreciation TakenOptionalAuto-calc (27.5yr)
Replacement Property PriceRequiredRequired
New Mortgage AmountOptional0
Cash Boot ReceivedOptional0
Filing StatusOptionalMarried Filing Jointly
Federal LTCG BracketOptional15%
State Capital Gains RateOptionalEnter your state rate
Annual Income (AGI)OptionalFor NIIT check
Sale DateOptionalToday
OutputDescription
Eligibility Verdict5 tiers (ELIGIBLE STRONG / MODERATE / PARTIAL / AT RISK / NOT ELIGIBLE)
Tax DeferredTotal Tax If Sold − Tax If Exchanged
Total Tax If SoldFed Recapture + Fed LTCG + State + NIIT
Tax If ExchangedBoot Tax only (recapture-first allocation)
Realized GainSale Price − Selling Costs − Adjusted Basis
Recapture PortionMIN(Realized Gain, Depreciation Taken)
LTCG PortionRealized Gain − Recapture Portion
Total BootCash Boot + Mortgage Boot + Trade-Down Boot (capped at Realized Gain)
45-Day DeadlineSale Date + 45 calendar days
180-Day DeadlineSale Date + 180 calendar days
Days Remaining (ID / Exchange)45 or 180 − Days Since Sale

The status label is a model-based screening label. It does not verify IRS eligibility.

1031 Exchange Formula / Methodology

Adjusted Basis

Adjusted Basis = Original Price + Closing Costs + Capital Improvements − Depreciation Taken

Realized Gain

Realized Gain = Sale Price − Selling Costs − Adjusted Basis
Recapture Portion = MIN(Realized Gain, Depreciation Taken)
LTCG Portion = Realized Gain − Recapture Portion

Tax If Sold

Federal Recapture Tax = Recapture Portion × 25%
Federal LTCG Tax = LTCG Portion × selected LTCG Bracket
Simplified State Tax = Realized Gain × State Rate
Simplified NIIT = Realized Gain × 3.8% if AGI exceeds threshold
Total Tax If Sold = sum

Boot Taxation (Recapture-First)

Boot Recapture = MIN(Total Boot, Depreciation Taken)
Boot LTCG = Total Boot − Boot Recapture
Total Boot Tax = Boot Recapture × 25% + Boot LTCG × LTCG Bracket + simplified state + simplified NIIT

Tax Deferred

Tax Deferred = Total Tax If Sold − Total Boot Tax
NIIT is simplified. Actual NIIT is generally 3.8% on the lesser of net investment income or the amount by which MAGI exceeds the statutory threshold. This calculator may overstate NIIT in marginal cases.

Worked Example — Modeled 1031 Exchange Scenario

Inputs

  • Original Purchase: $200,000
  • Held: 10 years
  • Sale Price: $500,000 | Selling Costs: 7%
  • Mortgage Payoff: $150,000
  • Replacement: $500,000 | New Mortgage: $150,000
  • Tax Profile: MFJ, 15% LTCG, 5% State

Selected Outputs

  • Modeled Adjusted Basis: ~$130K
  • Modeled Realized Gain: ~$335K
  • Modeled Tax If Sold: ~$87K
  • Modeled Boot: $0 (full replacement)
  • Modeled Tax Deferred: ~$87K

Interpretation: This example shows how the calculator organizes gain, recapture, boot, and tax-deferral estimates. It is a modeled planning scenario only. It does not prove that a real exchange qualifies under IRS rules or that the taxpayer will owe the exact tax shown.

What Is a 1031 Exchange?

A 1031 exchange is a like-kind exchange of real property held for business or investment use. When structured correctly, it may allow recognition of gain to be deferred rather than recognized immediately.

The key concept is deferral. A 1031 exchange generally postpones gain into the replacement property. It does not automatically eliminate tax.

A valid exchange can depend on several requirements, including: both properties must be qualifying real property; both must be held for business or investment use; the replacement property must be properly identified; deadlines must be met; sale proceeds must be handled through a Qualified Intermediary; the transaction must avoid constructive receipt; and reporting and documentation must be handled correctly.

This calculator estimates tax deferral mechanics. It does not determine whether the transaction qualifies under IRS rules.

How to Read Tax Deferred, Boot, Deadlines and Modeled Status

Status Label

The status label is a model-based screening label. It is not an IRS determination, tax opinion, legal opinion, Qualified Intermediary confirmation, or guarantee that the exchange will qualify.

✅ELIGIBLE — STRONG TAX DEFERRAL

Modeled full-deferral scenario with larger estimated tax deferral under entered assumptions. Requires CPA, attorney, QI, and documentation review.

✅ELIGIBLE — MODERATE BENEFIT

Modeled full-deferral scenario with smaller estimated tax deferral. Review QI fees, replacement property quality, timing, and professional costs.

🟡PARTIALLY DEFERRED

Modeled partial-deferral scenario. Boot may cause some tax to be recognized currently.

⚠️AT RISK

Modeled scenario with timing pressure, small modeled benefit, or replacement-property shortfall. Requires professional review.

❌NOT ELIGIBLE

Modeled hard-fail condition based on entered assumptions. This does not replace professional review of actual facts.

The calculator cannot verify like-kind property classification, Qualified Intermediary usage, deed assignment, related-party issues, identification format, constructive receipt, tax reporting, state tax rules, or full IRS compliance.

Tax Breakdown

  • Federal LTCG: applies to LTCG portion of gain at the selected bracket.
  • Depreciation Recapture (25%): applies to depreciation taken, not total gain.
  • State Capital Gains: simplified flat rate. Actual state treatment varies.
  • NIIT: simplified. Actual NIIT is generally based on the lesser of net investment income or MAGI excess over the statutory threshold.

Boot

Boot is the portion of an exchange that may be currently taxable. Three types: Cash Boot, Mortgage Boot, and Trade-Down Boot. The calculator estimates boot tax using a simplified recapture-first approach.

Deadline Interpretation

  • 45-Day Identification: replacement property generally must be identified in writing within 45 calendar days after the relinquished property transfer.
  • 180-Day Exchange: replacement property generally must be received by the earlier applicable exchange deadline.
  • Missing a required deadline may cause the exchange to fail to qualify for deferral.
  • The calculator estimates dates only. It does not verify identification format, delivery, QI receipt, extensions, disaster relief, or tax-return due-date interactions.
Tax Deferred, Not Eliminated: Tax Deferred represents tax postponed, not permanently saved. When the replacement property is eventually sold without another qualifying exchange, deferred gain may become taxable.

Methodology & Assumptions

The outputs on this page are planning estimates, not IRS determinations, tax advice, legal advice, appraisal conclusions, investment recommendations, or Qualified Intermediary instructions.

  • Sale price, selling costs, basis, improvements, depreciation, replacement property value, debt, and boot are user-entered
  • Adjusted basis is modeled from original cost, closing costs, improvements, and depreciation taken
  • Depreciation recapture is simplified and may not match actual tax treatment
  • State capital gains tax is modeled as a flat user-entered percentage
  • NIIT is simplified and may overstate tax in marginal cases
  • Federal LTCG bracket is user-selected and not automatically determined from taxable income
  • Boot is estimated from cash received, debt shortfall, and replacement-property shortfall
  • The calculator models a standard delayed exchange with one replacement property
  • Reverse exchanges, improvement exchanges, multi-property identification rules, related-party rules, partnership issues, and entity-specific rules are not modeled

Users should replace defaults with actual closing statements, depreciation schedules, tax returns, lender payoff statements, QI documents, CPA guidance, attorney review, and state-specific tax advice.

Modeled 1031 Exchange Planning Scenarios

The scenarios below are illustrative planning references, not benchmarks, market statistics, tax advice, or typical taxpayer outcomes. Actual results depend on sale price, adjusted basis, depreciation, state tax rules, AGI, NIIT, boot, debt replacement, replacement property value, and exchange structure.

Smaller modeled deferral

  • •A lower modeled tax deferral may still matter, but it should be compared with QI fees, professional fees, timing pressure, and replacement-property quality.

Moderate modeled deferral

  • •A moderate modeled deferral may justify deeper professional review if the replacement property also makes economic sense.

Larger modeled deferral

  • •A larger modeled deferral can preserve more capital for reinvestment, but the tax is deferred, not automatically eliminated.

Partial exchange / boot scenario

  • •Boot may cause some gain to be recognized currently. Review cash boot, mortgage boot, trade-down boot, depreciation recapture, state tax, and NIIT assumptions.

1031 Strategy and Use Cases

First-Time Exchanger

Use the calculator to understand possible tax deferral, boot, deadlines, and professional-review needs. Do not treat a modeled eligible status as proof that the transaction qualifies.

Portfolio Builder

Compare the modeled tax deferral with replacement-property fundamentals. Tax deferral should not be analyzed separately from ROI, cash flow, DSCR, financing, location, and asset quality.

Retiree or Estate-Planning Scenario

Outcomes depend on basis rules, ownership structure, tax law, estate planning, and individual circumstances. Review with a qualified tax professional and estate attorney.

High-AGI Taxpayer

Review NIIT and state tax assumptions carefully. The NIIT calculation in this calculator is simplified and may not equal the actual tax due.

Relocation Investor

Changing residence or investing across states may affect state tax treatment. State sourcing and nexus rules vary. Verify with a state-licensed CPA.

Replacement Property Comparison

Use this calculator to estimate tax mechanics, then evaluate each replacement property with ROI, cash flow, cap rate, DSCR, debt, risk, and market fundamentals.

Common Use Cases

Pre-sale planning

Estimate potential tax deferral before selling an appreciated business or investment real property.

Replacement property comparison

Compare modeled boot and tax deferral across replacement candidates, then analyze each property independently.

Deadline tracking

Estimate 45-day and 180-day dates from the sale closing date. Confirm actual deadlines with the Qualified Intermediary.

Partial exchange review

Estimate whether cash boot, mortgage boot, or trade-down boot may create current taxable gain.

State tax planning

Model a simplified state tax rate, then verify actual state treatment with a state-licensed tax professional.

Professional discussion prep

Use the output as a starting point for CPA, QI, attorney, lender, and replacement-property discussions.

Industry Context / IRS References

1031 exchange planning is based on federal tax rules and transaction structure. This page is not affiliated with the IRS and does not provide tax advice.

Useful IRS reference points:

  • Section 1031 treatment applies to qualifying real property held for trade/business or investment, not property held primarily for sale.
  • Deferred exchanges require strict timing and identification procedures.
  • Form 8824 is used to report like-kind exchanges.
  • NIIT is calculated under separate IRS rules and is simplified in this calculator.

Federal LTCG brackets are adjusted periodically. This calculator uses a user-selected LTCG bracket and does not automatically determine the correct rate from taxable income. Verify the applicable bracket using current IRS guidance or a qualified tax professional.

Sources: IRS Instructions for Form 8824; IRS Like-Kind Exchanges Under IRC Section 1031; IRS Topic No. 559, Net Investment Income Tax.

Limitations of This Calculator

Eligibility is not verified

The calculator cannot verify like-kind property classification, investment/business use, Qualified Intermediary setup, constructive receipt, written identification, deed assignment, related-party issues, tax reporting, or IRS compliance.

Tax is deferred, not automatically eliminated

Tax Deferred means tax postponed under the modeled scenario. When the replacement property is sold without another qualifying exchange, deferred gain may become taxable.

State tax is simplified

The calculator applies a flat user-entered state rate. Actual state treatment may differ by state, property location, residency, sourcing, depreciation, and conformity rules.

NIIT is simplified

The calculator may estimate NIIT as 3.8% on gain when AGI exceeds a threshold. Actual NIIT is generally based on the lesser of net investment income or MAGI excess over the statutory threshold.

Depreciation is simplified

Auto-depreciation may not reflect land allocation, commercial 39-year depreciation, cost segregation, bonus depreciation, prior depreciation, partial-year conventions, or actual tax records.

Standard delayed exchange only

The calculator does not model reverse exchanges, improvement exchanges, multi-property identification rules, related-party exchanges, partnership/entity-level issues, or complex ownership structures.

Single replacement property

The model assumes one replacement property. It does not evaluate 3-property, 200%, or 95% identification rules.

Not professional advice

This calculator is educational only. It is not tax advice, legal advice, investment advice, IRS guidance, QI instruction, or a substitute for professional review.

When This Calculator May Not Fit

  • • Primary residence sales (use Section 121 exclusion rules instead)
  • • Stocks, bonds, partnership interests, or personal property
  • • Foreign-to-US or US-to-foreign property scenarios
  • • Reverse exchanges, improvement exchanges, or multi-property identification
  • • Related-party exchanges or partnership/entity restructuring
  • • Very small modeled deferral where professional fees may exceed benefit

Common Mistakes in 1031 Exchange Analysis

1

Treating the status label as a guarantee

A modeled status label does not verify QI usage, like-kind classification, documentation, identification format, constructive receipt, or IRS compliance.

2

Ignoring boot

Cash boot, mortgage boot, and trade-down boot can cause some gain to be recognized currently. Review boot carefully with a tax professional.

3

Using estimated depreciation instead of tax records

Actual depreciation may differ from simplified auto-depreciation. Use tax returns or depreciation schedules where available.

4

Missing identification or exchange deadlines

The 45-day and 180-day timing rules are strict. Confirm deadlines and identification requirements with the Qualified Intermediary and tax advisor.

5

Touching sale proceeds

Direct or constructive receipt of sale proceeds can prevent exchange treatment. A Qualified Intermediary structure is usually used to avoid this issue.

6

Pursuing deferral without evaluating the replacement property

A replacement property should still be evaluated on its own economics: cash flow, NOI, DSCR, cap rate, financing, location, risk, and exit plan.

7

Ignoring state tax and NIIT complexity

State rules and NIIT may differ from simplified calculator assumptions. Verify with a qualified tax professional.

Frequently Asked Questions

Does this calculator work for primary residence sales?
No. This calculator is designed for real property held for business or investment use. Primary residence sales are generally analyzed under different rules, such as Section 121. Mixed-use and conversion scenarios require professional tax review.
Does an "eligible" status mean my exchange will qualify?
No. The status label is a model-based screening result. It does not verify Qualified Intermediary setup, like-kind classification, written identification, constructive receipt, related-party rules, deed structure, or IRS compliance.
Is 1031 tax deferred or eliminated?
A 1031 exchange generally defers recognition of gain. It does not automatically eliminate tax. Deferred gain may become taxable when the replacement property is later sold without another qualifying exchange.
How is boot taxed?
Boot is the portion of an exchange that may be currently taxable. This calculator estimates boot tax using a simplified recapture-first approach. Actual treatment depends on depreciation, gain character, state rules, NIIT, and taxpayer-specific facts.
What is the difference between the 45-day and 180-day deadlines?
The 45-day period is generally used for written identification of replacement property. The 180-day period is generally used for receiving the replacement property, subject to applicable tax-return timing rules. Confirm actual deadlines with the Qualified Intermediary and tax advisor.
How accurate are the state tax and NIIT calculations?
They are simplified. State tax is modeled as a flat user-entered rate. NIIT is simplified and may overstate tax in some cases. Actual tax should be reviewed by a qualified tax professional.
Can I do a 1031 if I lived in the property part-time?
Mixed-use and conversion cases are fact-specific. Property use, rental history, intent, timing, and documentation matter. Review with a 1031-specialized CPA or attorney.
What is a Qualified Intermediary?
A Qualified Intermediary is an independent party used to facilitate the exchange and hold proceeds. The calculator does not verify QI setup or documents.
Can I exchange one property for multiple replacement properties?
Some exchanges involve multiple identified or acquired replacement properties, but this calculator models one replacement property only. Multi-property identification rules require professional review.
What if I am doing a reverse 1031 exchange?
This calculator does not model reverse exchanges. Reverse exchanges are more complex and may involve an Exchange Accommodation Titleholder. Use professional legal and tax review.
Should I add cash to avoid mortgage boot?
Adding cash may reduce or offset mortgage boot in some structures, but the correct approach depends on the exchange structure, debt replacement, cash reinvestment, lender terms, and tax advice.
Can I save scenarios to compare replacement properties?
Yes, if Saved Scenarios are available. Saved scenarios are useful for comparing assumptions, but they do not replace professional review or replacement-property underwriting.
How much tax do you pay on a 1031 exchange?
If a transaction fully qualifies and no boot is received, current recognized gain may be reduced or deferred. If boot is received, some tax may be due. Actual tax depends on the taxpayer's facts and should be confirmed by a qualified tax professional.
What happens if a 1031 exchange fails?
If an exchange fails to qualify, the transaction may be treated as a taxable sale. The calculator's "Tax If Sold" estimate may help with planning, but actual tax should be calculated by a CPA.
Can you live in a 1031 exchange property?
Replacement property generally must be held for investment or business use. Converting to personal use later is fact-specific and requires tax guidance.
How many times can you do a 1031 exchange?
There is no simple calculator-based answer for long-term chaining strategies. Repeated exchanges may be possible if each transaction independently satisfies the rules, but tax, estate, basis, ownership, and law-change issues require professional review.

Disclaimer

This calculator and its outputs are for educational and informational purposes only. Results are planning estimates based on user-entered assumptions and should not be treated as tax advice, legal advice, IRS eligibility determinations, Qualified Intermediary instructions, appraisal conclusions, or investment advice. Tax rules, state treatment, professional fees, and transaction requirements vary. Consult qualified professionals before initiating an exchange.