Educational Tool Only
This calculator is for educational purposes only and does not constitute tax or legal advice. Consult with a qualified CPA or tax attorney before making any tax decisions. 1031 exchanges have strict IRS rules and timelines that must be followed precisely.
Property Sale Details
Tax Rates
Replacement Property
Tax Breakdown (If Sold)
10-Year Wealth Projection
Sell & Pay Tax
Pay taxes now, reinvest remaining cash
1031 ExchangeBest Option
Defer all taxes, invest full proceeds
Hold Until Death
Step-up basis, heirs pay zero tax
1031 Exchange Timeline
Close on Relinquished Property
Day 0 - Sell your current property
Identification Deadline
Identify up to 3 replacement properties in writing
Exchange Completion
Close on replacement property to complete the exchange
Critical: Missing either deadline disqualifies the entire exchange and triggers immediate tax liability.
What is "Boot"?
Boot refers to any cash or non-like-kind property received in a 1031 exchange. It is taxable in the year received.
- •Cash received from the sale
- •Debt relief (if new loan is smaller)
- •Personal property not qualified for exchange
Reverse 1031 Exchange
Buy the replacement property BEFORE selling your current property. Useful in competitive markets.
- •Exchange Accommodation Titleholder (EAT) holds property
- •180 days to complete the exchange
- •More complex and expensive to execute
DST (Delaware Statutory Trust)
Invest in fractional ownership of institutional-grade properties. A popular 1031 alternative for passive investors.
- ✓No property management responsibilities
- ✓Portfolio diversification across properties
- ⚠Limited control and liquidity
Qualified Intermediary (QI)
A third-party facilitator required for all 1031 exchanges. They hold the sale proceeds to prevent constructive receipt.
- •Must be independent (not your agent/attorney)
- •Holds funds in escrow during exchange period
- •Typically charges $800-$1,500 per exchange