At the listing appointment for a rental
Investor sellers want to know what they'll keep. Show the deferred and taxable amounts alongside your pricing so they can plan with their tax adviser before listing.
Investor tools · Exchanges
A 1031 exchange calculator for investor sellers
When an investor sells a rental, the first question is often 'can I defer the tax?' A like-kind exchange under Internal Revenue Code Section 1031 can defer gain on qualifying investment property when rules and deadlines are met. This 1031 exchange calculator estimates the total gain, the portion deferred and the tax due now on any cash taken out (boot), so your investor seller arrives at their tax adviser and qualified intermediary with numbers in hand.
- Included on: Brokerage plan and up
- Runs in English and Spanish
- Leads arrive with all 5 results attached
What does a 1031 exchange defer?
In a qualifying like-kind exchange of business or investment real property, gain is deferred rather than recognized, as long as the investor reinvests through a qualified intermediary within the deadlines. Cash or other non-like-kind property received (boot) is generally taxable. The calculator estimates both parts. It isn't tax advice.
When you'd send it
When to put the 1031 Like-Kind Exchange Calculator in front of people
When an investor is choosing a replacement property
Taking cash out creates boot. Running the numbers at different cash-out amounts shows the tax trade-off of keeping some proceeds.
On your investor services page
A 1031 calculator signals that you work with investors on both sides of an exchange, which is the kind of agent investors refer to each other.
What your visitor sees
The investor enters the sale price, selling costs, adjusted cost basis, cash taken out (boot) and their capital gains tax rate. They see the deferred gain, the recognized (taxable) gain, the tax deferred, the total realized gain and the tax due now on boot.
The lead you receiveAn investor seller planning an exchange
You receive the Sale Price, Adjusted Cost Basis, Cash Taken Out (Boot), Total Realized Gain, Deferred Gain, Recognized (Taxable) Gain and Tax Due Now on Boot. This is a listing lead and a purchase lead at once, because an exchange needs a replacement property.
Follow-up that works
- Offer a market analysis on the property they're selling, and ask about their exchange timeline.
- Suggest they engage a qualified intermediary before closing. It can't be arranged after.
- Start a search for replacement properties early, given the 45-day identification window.
- What your visitor enters
- Sale Price
- their input
- Capital Gains Tax Rate (%)
- their input
- Selling Costs
- their input
- Adjusted Cost Basis
- their input
- Cash Taken Out (Boot)
- their input
- What they see (and what you receive)
- Deferred Gain
- their result
- Recognized (Taxable) Gain
- their result
- Tax Deferred
- their result
- Total Realized Gain
- their result
- Tax Due Now on Boot
- their result
- Contact and source
- Name, email, phone
- with consent
- Page and campaign
- UTM · referrer
With $40,000 cash out, your estimate showed about $9,000 in tax now and the rest deferred. Your tax adviser and intermediary will confirm. Meanwhile, should I start pulling replacement properties so the 45-day clock isn't a scramble?
Before and after
Your page before and after this calculator
BeforeAfter
Before: Thinking of selling your rental?
- Investors fear the tax bill and hold
- The exchange is discussed too late
- Replacement property searches start in a panic
After: Estimate your 1031 outcome
- Deferred and taxable amounts shown upfront
- The trade-off of taking cash out is clear
- The search starts before the clock does
Reading the results
What each result means for your follow-up
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
- Deferred Gain
- The portion of the gain not recognized this year if the exchange qualifies. It carries over into the replacement property's basis.
- Recognized (Taxable) Gain
- Gain recognized because of boot. It's the amount the investor should expect to pay tax on this year.
- Tax Due Now on Boot
- Recognized gain times the tax rate entered. Real tax depends on depreciation recapture, state tax and the investor's situation.
What can go wrong
Mistakes that cost agents the lead
Presenting estimates as tax advice
Exchanges involve depreciation recapture, state rules, related-party rules and more. Always refer investors to a tax adviser and a qualified intermediary.
Starting the exchange too late
The intermediary must be in place before the relinquished property closes. Raise the exchange at listing, not at closing.
Forgetting debt replacement
Reducing mortgage debt on the replacement property can also create taxable boot. The calculator handles cash boot. The adviser should review debt.
Inside the 1031 Like-Kind Exchange Calculator
What your visitor enters (5)
Property Sold
- Sale Price
- Selling Costs
- Adjusted Cost Basis
Exchange
- Cash Taken Out (Boot)
- Capital Gains Tax Rate (%)
Field names are shown as they appear in the calculator's English interface.
What they see (and what you receive) (5)
- Deferred Gain
- Recognized (Taxable) Gain
- Tax Deferred
- Total Realized Gain
- Tax Due Now on Boot
Definitions shown in the calculator (9)
- 1031 exchange
- A swap of investment or business real estate for other like-kind property under Section 1031 of the Internal Revenue Code. When the rules are followed, the gain on the property sold is postponed rather than taxed in the year of sale. This calculator estimates how much gain is deferred and how much becomes taxable now.
- Boot
- Cash or other non-like-kind value you receive in the exchange instead of reinvesting it, such as sale proceeds you keep. Boot is taxable up to the amount of your realized gain. In this calculator, the Cash Taken Out figure is treated as boot and drives both the recognized gain and the tax due now.
- Adjusted cost basis
- What the IRS treats as your investment in the property: the original purchase price plus capital improvements, minus the depreciation you have claimed. It is subtracted from the net sale price to find the gain. A lower basis, often the result of years of depreciation, means a larger gain to defer or pay tax on.
- Realized gain
- The total economic gain on the sale: sale price minus selling costs minus adjusted cost basis. It exists whether or not tax is due this year. In an exchange, the realized gain splits into a recognized part, taxed now, and a deferred part carried into the replacement property. This calculator reports it as Total Realized Gain.
- Recognized gain
- The portion of the realized gain that is taxable in the year of the exchange. Here it equals the boot received, but never more than the realized gain itself. Multiplying the recognized gain by your capital gains tax rate gives the estimated tax due now, shown in this calculator as Tax Due Now on Boot.
- Deferred gain
- The part of the realized gain that is not taxed now because it was rolled into the replacement property. The tax is postponed, not forgiven: the deferred gain lowers the basis of the new property and can become taxable when that property is later sold in a taxable sale. Tax Deferred applies your rate to this amount.
- Capital gains tax rate
- The combined federal and state rate you expect to pay on the gain from selling property held more than a year. Federal long-term rates depend on taxable income, and some higher earners also owe the net investment income tax. This calculator uses the single rate you enter to value both the deferred tax and the tax due now.
- Like-kind property
- Real property held for investment or for use in a business, exchanged for other real property held for the same kind of purpose. Quality and type can differ, so land can be exchanged for a rental building. A personal residence or property held mainly for resale does not qualify. This calculator assumes both properties meet the test.
- Qualified intermediary
- An independent party that holds the sale proceeds between the sale of the old property and the purchase of the new one. If the seller takes control of the cash, even briefly, the exchange can fail and the full gain may become taxable. The intermediary also prepares the exchange documents and tracks the deadlines.
Calculator disclaimer
Estimates only. A simplified model of gain recognition and boot; it ignores depreciation recapture rates, financing details and state rules. Consult a qualified intermediary and tax advisor.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
Terms on this page
Sources
Questions by topic
1031 Like-Kind Exchange Calculator: questions agents ask
How does the calculator work out the gain?
Realized gain = sale price − selling costs − adjusted cost basis. Recognized gain is the lesser of the realized gain and the boot. Deferred gain is the rest. Tax due now = recognized gain × the rate entered.
Does it include depreciation recapture?
Not separately. Recaptured depreciation may be taxed at different rates. The investor's tax adviser should calculate the actual liability.
Does it apply to primary residences?
No. Section 1031 applies to real property held for business or investment. Primary residences have a separate exclusion, and the seller net sheet is the better tool for those sellers.
What's my role as an agent in an exchange?
Marketing and selling the relinquished property, finding replacement property within the deadlines and coordinating with the qualified intermediary and the investor's advisers. Tax and legal advice come from those advisers.
When should an investor engage a qualified intermediary?
Before the relinquished property closes. If the investor receives the proceeds directly, the exchange generally fails. Raise it at listing.
How do I explain boot simply?
Anything the investor gets out of the exchange that isn't like-kind property, usually cash, is boot, and it's generally taxable. Keeping all proceeds in the exchange keeps the gain deferred.
Which plan includes 1031 calculators?
The Brokerage plan includes the 1031 exchange and 1031 timeline calculators as part of the Real Estate & Pros tools.
Should I pair it with the timeline calculator?
Yes. A widget with both answers 'what's deferred?' and 'when are my deadlines?', the two questions investor sellers ask first.
Does it run in Spanish?
Yes. It runs in English and Spanish.
Pairs well with
Calculators that pair well with this one
Put the 1031 Like-Kind Exchange Calculator on your next listing
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