CALCULATOR · BOOT

Boot and exchange balance

In a 1031 exchange, boot is the taxable portion of the transaction. Cash boot arises when proceeds exceed the replacement cost. Mortgage boot arises when debt relief exceeds new debt assumed. Both are taxable unless offset.

INPUTS

Relinquished property sale price($)

Replacement property cost($)

Debt on relinquished property($)

Debt on replacement property($)

Additional cash added to exchange($)

Cash you add out of pocket to offset mortgage boot relief

RESULT

Enter values and click Calculate to see your estimate.

Illustrative only. Boot recognition rules under IRC Section 1031(b) involve several nuances including the interaction between cash boot and mortgage boot offset rules. An exchange accommodator and CPA should review your specific transaction.