Replacement Property Value Calculator
Calculate the minimum replacement property value needed to defer all gain in your 1031 exchange. To achieve full tax deferral, you must reinvest all net proceeds and ensure the replacement property value equals or exceeds the sale price of your relinquished property.
Replacement Property Value Calculator Inputs
Sale price of the property you are selling
Outstanding mortgage balance on relinquished property
QI fees, escrow, title insurance, recording fees
Cash you plan to take out (creates boot if not zero)
Mortgage amount on replacement property
Understanding Replacement Property Value Requirements
Minimum Replacement Value: To defer all gain in a 1031 exchange, the replacement property value must equal or exceed the sale price of the relinquished property. This calculator accounts for your equity, new mortgage, and exchange costs.
Equity Reinvestment: All net proceeds from the sale (after paying off the mortgage, exchange costs, and any cash you take out) must be reinvested in the replacement property to achieve full tax deferral.
Debt Replacement: The new mortgage should equal or exceed the old mortgage to avoid mortgage boot. If the new mortgage is less than the old mortgage, the difference creates taxable boot.
Recommended Buffer: Adding a 5% buffer to the minimum replacement value helps account for unexpected costs, negotiation room, and ensures full deferral even if final costs differ slightly from estimates.
Educational content only. Not tax, legal, or investment advice. Results are estimates only. Consult a qualified intermediary and tax advisor before making decisions. Colorado does not impose a state real estate transfer tax. Recording fees and title insurance premiums still apply.