1031 Exchange Boot Calculator
See how much taxable boot a partial reinvestment would create, and what it takes to defer the full gain.
Relinquished & replacement
Estimated boot
What is boot?
Boot is any value you receive in an exchange that you do not reinvest — and it is taxable even inside a 1031 exchange. There are two kinds:
- Cash boot. Equity you pull out instead of reinvesting in the replacement property.
- Mortgage boot. Debt relief: if your new loan is smaller than the one you paid off and you don't make up the difference with cash, that reduction is treated as boot.
How to defer the entire gain
To eliminate boot, replace both your equity and your debt: reinvest all of your net equity and take on at least as much new debt as you paid off — or add equal cash to offset a smaller loan. Acquire replacement property of equal or greater value, and the full gain can be deferred.
Educational estimate only. This tool is for general illustration and is not tax, legal, or investment advice. It uses simplifying assumptions and the figures you enter, which may not reflect your situation or current law; depreciation recapture, net investment income tax, state taxes, and other items can change the result materially. Figures are illustrative and not guaranteed. Consult your own qualified tax and legal advisors before acting. Not an offer or solicitation. DST interests are sold only to accredited investors via private placement memorandum. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC; Baker 1031 Investments is independent of ASI.