Model proceeds, debt replacement, boot, and basis clearly. Review timelines, reinvestment targets, and taxable gaps. Make better exchange decisions with organized property swap estimates.
Enter the sale, debt, basis, replacement, and rate assumptions below. Results will appear above this form after submission.
| Scenario Item | Example Value | Meaning |
|---|---|---|
| Relinquished sale price | $850,000.00 | Gross contract value of the old investment property. |
| Selling expenses | $45,000.00 | Fees that reduce net proceeds and realized gain. |
| Adjusted basis | $390,000.00 | Tax basis after depreciation and improvements. |
| Debt paid off | $250,000.00 | Debt relief that must be offset with debt or cash. |
| Replacement price | $920,000.00 | Higher value purchase that supports full deferral. |
| New mortgage + added cash | $377,000.00 | Fully offsets debt relief and covers funding needs. |
| Estimated deferred gain | $415,000.00 | Gain postponed into the replacement basis. |
| Estimated replacement basis | $517,000.00 | Replacement value minus deferred gain, plus expenses. |
Net Sale Proceeds = Relinquished Sale Price − Selling Expenses
Exchange Equity Available = Net Sale Proceeds − Debt Paid Off
Realized Gain = Net Sale Proceeds − Adjusted Basis
Required Exchange Proceeds = (Replacement Price + Replacement Expenses) − New Debt − Additional Cash
Estimated Cash Boot = Exchange Equity Available − Exchange Proceeds Applied, never below zero
Estimated Recognized Gain = Lesser of Realized Gain or Estimated Boot
Estimated Deferred Gain = Realized Gain − Recognized Gain
Estimated Replacement Basis = Replacement Price − Deferred Gain + Replacement Expenses
Estimated Tax = Recapture Portion × Recapture Rate + Remaining Recognized Gain × Capital Gains Rate + Recognized Gain × State Rate
This model is intentionally simplified for planning. Actual treatment can change with related parties, improvements, prorations, debt structure, partnership interests, carryover basis adjustments, recapture details, and state-specific rules.
It estimates net proceeds, realized gain, taxable boot, deferred gain, replacement basis, and timing targets for a common deferred real estate exchange scenario.
Not always. Full deferral usually needs equal or greater replacement value and full reinvestment of exchange equity, while debt relief must be offset with new debt or added cash.
Boot is money or non-like-kind value received in the exchange. It can also arise when replacement value or debt replacement falls short.
Replacement basis affects future depreciation and gain when you later sell. A larger deferred gain usually lowers the new property’s carryover-style tax basis.
No. The tool gives planning estimates only. Depreciation recapture, state conformity, related-party rules, closing statement items, and legal structure can materially change actual tax outcomes.
No. This calculator is for investment or business real property planning. Primary residences and dealer property generally follow different tax rules.
The closing date starts the deferred exchange clock. The tool uses it to estimate the written identification deadline and the exchange completion deadline.
Yes. Proper documentation, escrow control, deadlines, entity structure, and tax reporting are essential. This calculator supports planning, not legal or tax advice.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.