1031 replacement calculator: how much property to buy
Three numbers from your sale tell you the minimum to buy, the equity to reinvest and the debt to replace for a full 1031 exchange.
Buying less or keeping cash can leave taxable boot.
Your numbers carry into the listings form.
How this is calculated
Buy at least = sale price minus closing costs. Reinvest in equity = sale price minus closing costs minus debt paid off. Replace in debt = the debt paid off, which you can cover with a new loan, your own added cash, or both. Exit LTV = debt paid off divided by sale price minus closing costs.
FAQ
How much do I need to buy to defer all the tax in a 1031 exchange?
Generally, buy replacement property worth at least your sale price minus closing costs, and reinvest all of your net equity. Buying less, or keeping cash, can leave taxable boot.
Do I have to take on a new mortgage?
No. The debt you paid off has to be replaced, but you can replace it with new debt or with added cash of your own. Either one counts.
What is exit LTV?
Exit loan-to-value is the debt you paid off divided by your sale price minus closing costs. It shows roughly how much financing your replacement needs if you don't add cash.
What if my equity is less than $100,000?
The math works the same at any size. Check whether each offering's minimum fits your equity.
Educational estimate only. Not tax, legal, or investment advice.