Capital Gains Rate
State Tax Rate
🏠 Relinquished Property (Sold)
$
$
$
$
🏢 Replacement Property (Buying)
$
$
$
$
Realized Gain
$0
Total profit from sale
Cash Boot
$0
Cash received
Debt Relief Boot
$0
Mortgage difference
Total Boot (Taxable)
$0
Amount subject to tax
Recognized Gain (Tax Due Now)
$0
Lesser of realized gain or total boot
Deferred Gain (Tax Saved)
$0
Tax-free rollover amount
Capital Gains Tax Due
$0
On recognized gain
State Tax Due
$0
On recognized gain
Total Tax Due Now
$0
Without 1031 exchange
📊 Boot Calculation Breakdown
📌 What is Boot in a 1031 Exchange?
• Cash Boot: Any cash or non-like-kind property you receive from the exchange is taxable.
• Debt Relief Boot: If mortgage on sold property > mortgage on new property, the difference is taxable.
• Taxable Boot = Cash Received + Debt Relief
• Recognized Gain = Lesser of (Realized Gain, Total Boot)
• To defer ALL tax: New property must be equal or greater value, and ALL equity must be reinvested.
• 💡 Tip: Any boot received is taxed at capital gains rates (up to 23.8% including NIIT).
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