Taking on less debt than was released creates taxable boot even if no cash is received from the exchange.
Real Estate Accounting
1031 exchange boot calculator that shows what triggers a taxable event.
Enter relinquished and replacement property values, mortgage balances, and cash flows to calculate cash boot, mortgage boot, total boot, and the gain recognized in a like-kind exchange.
Direct answerBoot is non-like-kind property received in a 1031 exchange - cash or net debt relief - and is taxable to the extent of realized gain.
Cash boot and mortgage bootGain realized vs. recognizedExchange qualification check
1. Enter exchange details
CalculatorEnter relinquished and replacement property details to calculate boot and gain recognized.
Enter exchange details or load a sample to calculate boot.
Live Tool
1031 Exchange Boot Calculator in the browser
Enter the exchange details to identify boot and estimate taxable gain before the exchange closes.
Privacy-first workflow
This page runs in the browser and does not upload any data.
What this tool is built to solve
A 1031 exchange boot calculator identifies cash boot, mortgage boot, and total taxable gain recognized so the exchange can be structured to defer as much gain as possible.
Any cash received from the exchange, including partial proceeds, is boot in the amount received.
Taxable boot is limited to the lesser of total boot and total gain realized.
Key signals
Use these signals to evaluate whether the exchange should be restructured before closing.
Decision support
Context for the tax planning discussion before the exchange closes.
Exchange summary
Full boot and gain calculation ready to share with the qualified intermediary or tax advisor.
Both sources of boot are calculated separately so the exchange can be restructured if either creates unexpected tax exposure.
See total gain realized and taxable gain recognized side by side to understand how much deferral is at stake.
The tool flags whether the replacement property meets the equal-or-greater value and debt requirements for full deferral.
Export the full boot analysis for review with the qualified intermediary, tax preparer, or attorney.
Guide Below The Tool
How to use the 1031 exchange boot calculator well
A 1031 exchange boot calculator identifies the cash boot, mortgage boot, and total taxable gain recognized in a like-kind exchange, so the deal can be structured to defer the maximum amount of gain.
Real estate investors, CPAs, tax attorneys, and qualified intermediaries analyzing the tax consequences of a 1031 exchange before closing.
Net mortgage relief is the most commonly missed boot item. Even exchanges with no cash received can trigger taxable gain if the replacement property carries less debt than the relinquished property.
Workflow
Four practical steps
1
Enter the relinquished property FMV, basis, and existing mortgage.These three inputs define the total gain realized and the mortgage relief that triggers debt boot.
2
Enter the replacement property FMV, new mortgage, and any cash paid or received.Cash paid into the exchange offsets mortgage boot. Cash received is always boot.
3
Review boot sources and total taxable gain.If boot is present, identify whether it can be eliminated by adding cash to the exchange, increasing the replacement mortgage, or purchasing a higher-value property.
4
Share the analysis with the qualified intermediary before closing.A QI can help structure the exchange to eliminate boot, but changes must be made before the exchange period closes.
For full deferral, the replacement property must be equal to or greater in value than the net proceeds from the relinquished property (value less selling costs).
New mortgage plus new cash invested must at least equal the old mortgage released. Shortfalls create mortgage boot.
Replacement property must be identified within 45 days and closed within 180 days. Missing either deadline triggers full gain recognition.
Unrecaptured Section 1250 gain from accumulated depreciation is taxed at up to 25% even in a successful exchange - it cannot be deferred.
The exchanger cannot receive or control the proceeds at any point. A QI must hold the exchange funds throughout the process.
Some states do not conform to federal 1031 deferral rules. Verify state tax consequences separately before closing.
The functional tool stays on top so users can solve the immediate boot question before reading a guide.
Cash boot and mortgage boot are shown separately so restructuring options are clear before closing.
Ledger Summit can build a richer 1031 planning model or exchange tracking system later, but this page delivers value now.
FAQ
1031 Exchange Boot Calculator questions, answered directly
Boot is non-like-kind property received in a 1031 exchange - either cash received, the net reduction in mortgage debt, or other non-qualified property. Boot is taxable to the extent of realized gain.
To defer all gain, the replacement property must be equal or greater in value to the relinquished property, the new mortgage plus cash invested must equal or exceed the old mortgage released, and no cash can be received from the exchange.
Mortgage boot (debt relief boot) occurs when the mortgage on the relinquished property exceeds the mortgage on the replacement property. The net debt reduction is treated as cash received and is taxable unless offset by additional cash paid into the exchange.
No. The calculator runs entirely in your browser and does not send any data to a server.
Next Step
Need this connected to a broader workflow?
Use the free browser tool first. If you need a full 1031 exchange planning model, basis tracking through multiple exchanges, or integrated tax projection, Ledger Summit can build the next layer.
Book a free call