Model a 1031 like‑kind exchange: defer capital gains tax by reinvesting proceeds into replacement property. Enter sale price, adjusted basis, debt relief, and replacement values to compute realized gain, boot, and deferred tax. Includes timelines (45/180 days), qualified intermediary role, and common pitfalls.
Frequently Asked Questions
What is "boot"?
Boot is non‑like‑kind property received (cash, debt relief exceeding new debt) that may trigger current tax.
Minimizing boot maximizes deferral.
Deadlines I must meet?
Identify replacement property within 45 days and close within 180 days of sale.
Missing deadlines disqualifies the exchange.
Do I need a QI?
Yes.
A qualified intermediary must hold proceeds; taxpayer receipt of cash taints the exchange and creates taxable boot.
Can I exchange into multiple properties?
Yes—use the 3‑property or 200% rule.
Ensure values and identification rules are compliant.
Personal use property eligible?
No.
Property must be held for investment or business use; primary homes don’t qualify for 1031 treatment.
State rules differ?
Some states have conformity differences; consult local guidance and model combined federal/state taxes.
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- Last updated: 2026-01-13
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Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.