What This Calculator Does

This tool does two things. It estimates the cash side of an exchange: the net proceeds from selling your relinquished property, the cash needed for the replacement, and a simplified comparison of estimated tax with and without an exchange. And it maps the two IRS deadlines that govern every exchange: 45 days to identify and 180 days to close.

Who It's For

It is for investors considering a like-kind exchange, and for agents and lenders helping clients plan one. It is a planning tool, not a substitute for a qualified intermediary, a tax professional, or an attorney.

What Each Input Means

  • Relinquished sale price, mortgage, selling costs: what the sale produces after the debt and the costs.
  • Replacement purchase price and closing costs: what the new property will cost.
  • Estimated taxable gain and effective tax rate: your own simplified inputs for the tax comparison. The real calculation involves depreciation recapture, state tax, and other factors this tool does not model.
  • Relinquished closing date: the date the 45-day and 180-day clocks start.

How the Calculation Works

  • Net proceeds = sale price minus mortgage minus selling costs.
  • Cash needed for replacement = replacement price plus closing costs minus net proceeds (the amount you must add).
  • Estimated tax = estimated gain times the effective rate you entered.
  • Timeline: identification deadline = closing date plus 45 days; exchange deadline = closing date plus 180 days.

What the Output Means

The tax comparison shows, in simplified form, what an exchange could defer based on the gain and rate you entered. The timeline shows the two deadlines that cannot move. If the replacement closing slips past 180 days, the exchange can be disqualified, which is why the closing calendar matters.

Common Questions

  • Who holds the proceeds? A qualified intermediary, by IRS requirement. The investor cannot take constructive receipt of the funds.
  • Can I identify more than one property? The IRS has specific identification rules, including the three-property rule and the 200% rule. Your QI and tax professional should guide the identification.
  • Does the timeline pause for weekends or holidays? No. The 45-day and 180-day periods run on calendar days under the IRS rules.

Limitations

This tool is educational. It does not model depreciation recapture, state taxes, boot, debt relief, or the many rules that govern a real exchange, and the tax comparison uses only the numbers you enter. Engage a qualified intermediary and your tax and legal professionals before structuring anything.

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