Like Kind Exchange Calculator
This calculator is designed to calculate and the recognized loss, gain and the basis for a Like Kind Exchange.
How the like kind exchange calculator works
It computes your realized gain (sale value minus basis), recognises only the gain up to any boot received, defers the rest, and rolls the deferred gain into a lower basis on the replacement property.
Worked example: with relinquished property value of $500,000, your adjusted basis in it of $300,000 and replacement property value of $520,000, the like-kind exchange (1031) calculator shows gain you defer of $200,000.
- Realized gain
- $200,000
- Recognized (taxable now)
- $0
- Deferred gain
- $200,000
- New property basis
- $320,000
The formula
Realized gain = value − basis. Recognized (taxable) = min(realized gain, boot). Deferred gain = realized − recognized. New basis = replacement value − deferred gain.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the like kind exchange calculator
What is a 1031 like-kind exchange?
A tax provision that lets you defer capital gains tax when you sell business or investment property and reinvest the proceeds in like-kind property, rather than cashing out.
Is the gain tax-free?
No — it is deferred, not eliminated. The unrecognized gain reduces your basis in the new property, so it is taxed later if you eventually sell without exchanging again.
What is "boot"?
Any cash or non-like-kind property you receive in the exchange. Boot is taxable now, up to the amount of your realized gain, even within a 1031 exchange.
Is the Like Kind Exchange Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.