Follow the default numbers.
With relinquished sale price of $600,000, original basis of $350,000, the model gives gain deferred: $280,000.
The formula is recognized gain = lesser of realized gain and taxable boot. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
A qualifying exchange is a process
Section 1031 generally applies to real property held for business or investment, not a personal residence or property held primarily for sale. The replacement must be properly identified and received on time. The tool assumes a qualifying exchange structure and shows arithmetic; it does not establish intent, validate identification or arrange a qualified intermediary.
Cash boot and debt relief are distinct
The simplified equity model compares available exchange equity plus additional cash with the equity required for the replacement. Retained cash can be boot. Debt relief not replaced by new debt or contributed cash can also be boot. Additional borrowing does not automatically wash away cash received. Recognized gain is limited to realized gain; the remaining gain is deferred.
The deadline clock does not pause
Identification normally ends forty-five calendar days after transfer. Completion ends at the earlier of one hundred eighty days or the federal return due date including extensions. The dates are calendar-day reminders and do not extend for weekends automatically. Disaster relief, reverse exchanges, multiple relinquished properties and other exceptions require separate treatment.
Replacement basis carries the deferred gain
The simplified replacement basis is replacement value less deferred gain. Actual Form 8824 reporting can include different exchange expenses, other property, liabilities, cash allocations and depreciation carryover schedules. A future sale can recognize deferred amounts. Share the modeled boot, dates and cash requirements with your qualified intermediary and CPA before the transaction closes.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.