1031 Exchange Boot Calculator
Quantify taxable boot and deferred gain when rolling proceeds into a like-kind replacement property, with depreciation recapture, capital gains and NIIT.
- Recapture Rate
- 25%
- Unrecaptured §1250
- Long-Term CGT
- 20%
- Top bracket
- NIIT
- 3.8%
- Net investment income
Formula & Statutory Rule
Formula
recognized_gain = min(net_boot, realized_gain)
Statutory Rule
net_boot = cash_boot + mortgage_boot; recapture = min(recognized, accumulated_depreciation) × 25%Regional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Recapture | 25% | §1250 |
| Long-term CGT | 20% | Top bracket |
| NIIT | 3.8% | Investment income |
Frequently Asked Questions
What is boot in a 1031 exchange?
Boot is any non-like-kind value received, such as cash or net debt relief, and it is taxable to the extent of realized gain.
How is mortgage boot calculated?
Mortgage boot is the debt relief on the relinquished property less any new cash you add to the replacement.
What is the 45/180 day rule?
You must identify replacement property within 45 days and close within 180 days of the relinquished sale.
Does depreciation recapture apply?
Yes. Unrecaptured Section 1250 gain is taxed at up to 25% before capital gains rates apply.