Reverse 1031 Exchange Calculator
Model a reverse 1031 exchange where the replacement property is acquired before the relinquished property is sold, and quantify any resulting boot.
- Identification
- 45 days
- After closing
- Exchange Period
- 180 days
- Total window
- Recapture Rate
- 25%
- §1250
Formula & Statutory Rule
Formula
recognized_gain = min(net_boot, realized_gain)
Statutory Rule
reverse: replacement_first = true; EAT_hold_max = 180 days; identify_within = 45 daysRegional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Identification | 45 days | After closing |
| Exchange period | 180 days | Total |
| Recapture | 25% | §1250 |
Frequently Asked Questions
What is a reverse exchange?
The replacement property is acquired first and held by an exchange accommodation titleholder until the relinquished property sells.
How long can the EAT hold title?
The exchange accommodation titleholder may hold the property for up to 180 days.
Does a reverse exchange avoid boot?
It can, provided the values and debt are matched and the deadlines are met.
Is a reverse exchange more expensive?
Yes. It involves additional fees and financing for the accommodation titleholder.