1031 Exchange Estimator

Adjusted basis starts with what you originally paid, adds capital improvements, and subtracts the depreciation you have taken. Realized gain is the net sale price — sale price less selling expenses — minus that adjusted basis. Net equity is what is left after the existing loan is paid off, which is a different number entirely and often much smaller than the gain.

The tax figures illustrate what a straight sale could expose using the rates you entered. Depreciation you claimed is generally taxed at a different rate than the remaining appreciation, which is why the two are shown separately. These are simplified estimates: they do not model net investment income tax, alternative minimum tax, passive loss carryforwards, installment treatment, partial-year proration, entity structure, or your specific filing situation.

"Boot" refers to value you receive that is not reinvested — leftover cash, or a reduction in debt that is not replaced. Boot is generally taxable even inside an exchange. The comparison above flags where your proposed replacement property may fall short in price, in debt replaced, or in cash reinvested.

Nothing here should be read as a guarantee of tax deferral. Exchanges have strict identification and closing deadlines, qualified-use requirements, and rules about who may hold the proceeds. The outcome depends on facts and paperwork, and a qualified intermediary must be engaged before the sale closes.