NOTES:

* Full Deferral Achieved when both Cash Boot = 0 and Debt Boot After Cash Offset = 0. Deferral at Risk if either is > 0.

In a 1031 exchange, “boot” refers to any cash or debt difference not fully reinvested — which may be taxable.

“Potentially Taxable Boot” shows the greater of cash or debt boot. It’s an upper bound for exposure—not actual taxable income, which is limited by realized gain and other factors. Consult your tax advisor.

DISCLAIMERS:

This 1031 Exchange Debt-Replacement Calculator is provided for illustrative and educational purposes only. The results shown are estimates based on user-supplied inputs and simplified assumptions. They are not intended to determine actual tax liability, exchange eligibility, or compliance with IRS requirements.

The IRS rules governing Section 1031 exchanges, including the treatment of boot, debt replacement, qualified intermediary handling, and exchange timing, are complex and may change over time. Actual outcomes depend on numerous factors such as property use, holding period, depreciation history, financing structure, and transaction sequencing.

This calculator does not constitute tax, legal, or accounting advice. Users should consult a Qualified Intermediary, CPA, or tax attorney before relying on these results for investment or reporting purposes.

Calculations assume all inputs are accurate and that replacement property acquisitions are completed in compliance with the IRS’s identification (45-day) and exchange (180-day) timelines under Section 1031.

While care has been taken to ensure accuracy, no warranty or guarantee is made as to the completeness or correctness of this tool or its outputs. Use is at your own discretion and risk.