1031 Exchange Calculator

Background.

The practical question behind 1031 Exchange Calculator is whether you can separate realized gain from the smaller amount recognized because cash or other boot was received. In this context, a qualifying like-kind exchange defers gain; it does not erase realized gain, and boot can trigger current recognition. The calculator therefore applies “realized gain = net amount realized − adjusted basis; simplified recognized gain = min(realized gain, entered cash and other boot).”

The editable entries are relinquished-property sale price, selling costs, adjusted tax basis, cash and other boot received. Use values from the document or measurement that governs this 1031 exchange question; the defaults are only the worked fixture below. Replacement-property basis, liabilities transferred, identification deadlines and qualified-intermediary compliance are deliberately excluded. That 1031 exchange boundary is part of the answer, not a generic disclaimer.

IRS Fact Sheet FS-2008-18; like-kind exchange realized and recognized gain documents the convention or governing rule used here. The 1031 exchange output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is 1031 exchange calculator?

1031 Exchange is the relationship behind this decision: a qualifying like-kind exchange defers gain; it does not erase realized gain, and boot can trigger current recognition. On this page it means realized gain = net amount realized − adjusted basis; simplified recognized gain = min(realized gain, entered cash and other boot). Replacement-property basis, liabilities transferred, identification deadlines and qualified-intermediary compliance are deliberately excluded; that is the line between the reported quantity and a broader tax analysis.

How to use this calculator.

1. 01Confirm that “realized gain = net amount realized − adjusted basis; simplified recognized gain = min(realized gain, entered cash and other boot)” matches the 1031 exchange convention you need.
2. 02Replace the fixture values for relinquished-property sale price, selling costs, adjusted tax basis, cash and other boot received with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read gain recognized under simplified boot limit together with this boundary: Replacement-property basis, liabilities transferred, identification deadlines and qualified-intermediary compliance are deliberately excluded.

The formula.

The calculation uses realized gain = net amount realized − adjusted basis; simplified recognized gain = min(realized gain, entered cash and other boot). In this 1031 exchange model, the entered terms are relinquished-property sale price, selling costs, adjusted tax basis, cash and other boot received. A qualifying like-kind exchange defers gain; it does not erase realized gain, and boot can trigger current recognition, which is why the relationship is presented under this name rather than as a universal alternative. Replacement-property basis, liabilities transferred, identification deadlines and qualified-intermediary compliance are deliberately excluded. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]IRS Fact Sheet FS-2008-18; like-kind exchange realized and recognized gain. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]U.S. Internal Revenue Service. About Form 8824, Like-Kind Exchanges. Retrieved 2026-08-07. independence: primary; access: open.
3. [3]U.S. Internal Revenue Service. Like-kind exchanges — real estate tax tips. Retrieved 2026-08-07. independence: primary; access: open.
4. [4]U.S. Internal Revenue Service. Publication 544, Sales and Other Dispositions of Assets. Retrieved 2026-08-07. independence: primary; access: open.
5. [5]U.S. Internal Revenue Service. Topic no. 703, Basis of assets. Retrieved 2026-08-07. independence: primary; access: open.