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Like-Kind Exchange Boot Calculator (IRC 1031)

What do these figures come to once the work is shown?

Realized gain, gain recognized because of cash or other boot, deferred gain and the carryover basis of a real property exchange.

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  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Gain recognized now
$50,000
Taxed even though the exchange is otherwise tax deferred
Gain realized
$550,000
Gain deferred
$500,000
Drawn to one scale
Gain recognized now$50,000
Gain realized$550,000
Gain deferred$500,000
Boot received$50,000
Basis carried to the property received$300,000
All results
MeasureResult
Gain recognized now
Lesser of realized gain and boot received
$50,000
Gain realized$550,000
Gain deferred$500,000
Boot received$50,000
Basis carried to the property received
Old basis, less money and other property received, plus gain recognized
$300,000
How this was worked out
Work shownrecomputed as you type
Gain realized = value of everything received - adjusted basis given up
Gain recognized = lesser of gain realized and (money + FMV of other property received)
Gain deferred = gain realized - gain recognized
Basis carried over = old basis - money and other property received + gain recognized

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Gain realized = value of everything received - adjusted basis given up
  • Gain recognized = lesser of gain realized and (money + FMV of other property received)
  • Gain deferred = gain realized - gain recognized
  • Basis carried over = old basis - money and other property received + gain recognized

How it works

Section 1031 defers gain when real property held for business or investment is swapped for like-kind real property. Since 2018 only real property qualifies. If you also receive money or other property, called boot, you recognize gain up to the boot.

The replacement property must be identified within 45 days and the exchange completed within 180 days, or by the return due date, including extensions, if earlier. This tool does not treat debt relief as boot and does not split basis among several properties received. A loss is not recognized in a like-kind exchange.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Does personal property qualify?

Not under the current statute, which limits section 1031 to real property.

What are the deadlines?

45 days to identify and 180 days to close, or the return due date with extensions if earlier, as in section 1031(a)(3).

Who recognizes the gain?

The recipient of the money or other property recognizes gain, but not more than the amount received.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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