Commercial 1031 Exchange Boot Calculator
Quantify taxable boot, deferred gain and depreciation recapture on a commercial like-kind exchange, with federal capital gains and NIIT.
- Recapture Rate
- 25%
- §1250
- Long-Term CGT
- 20%
- Top bracket
- NIIT
- 3.8%
- 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 |
| NIIT | 3.8% | Investment |
Frequently Asked Questions
Can commercial property be exchanged?
Yes. Commercial real estate held for investment or business use qualifies as like-kind property.
What triggers boot?
Cash received, net debt relief, or non-like-kind property received all create taxable boot.
How is recapture taxed?
Unrecaptured Section 1250 gain is taxed at up to 25% before capital gains rates apply.
What are the deadlines?
Identify replacement property within 45 days and close within 180 days of the relinquished sale.