Use this calculator to estimate the federal income tax consequences of a like-kind exchange of investment or business real property under Internal Revenue Code § 1031. Enter the figures from the relinquished property, the replacement property, and any cash boot or net mortgage relief. The calculator computes realized gain, recognized gain (the lesser of realized gain or boot), deferred gain, and the substituted basis in the replacement property.
The calculator applies the standard like-kind exchange computation under § 1001 (realized gain), § 1031 (deferral), § 1031(b) (boot recognition), and § 1031(d) (substituted basis):
The calculator assumes the exchange satisfies the like-kind, qualified intermediary, identification, and exchange-period requirements of § 1031 and Treasury Regulations §§ 1.1031(a)-1 through 1.1031(k)-1. Failure to satisfy any of those requirements can disqualify the exchange and cause full recognition of the realized gain.
Important. This calculator does not address state income tax, depreciation recapture under § 1245 or § 1250 (which is recognized to the extent of boot regardless of deferral), the use of qualified intermediaries, the 45-day identification or 180-day exchange-period rules, partial-interest exchanges, related-party rules under § 1031(f), or partnership-level issues. The calculator assumes the relinquished and replacement properties are real property held for investment or productive use in a trade or business and that the exchange satisfies the technical requirements for like-kind treatment. Specific structuring, timing, and documentation issues should be reviewed with qualified counsel before any exchange is initiated.
The calculations above are based on simplified assumptions. To discuss your specific situation with the firm, contact us directly.
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