Find the replacement value and loan you need to fully reinvest your equity and replace your debt — avoiding mortgage boot.
To defer the entire gain you must buy property of equal-or-greater value and take on at least as much debt as you paid off — or add cash to make up the difference. Falling short creates taxable mortgage boot, a real tax bill even if you never touched the cash.
This calculator tells you the minimum replacement value and new loan required at your target LTV to deploy all your equity and cover your old debt. If your chosen LTV comes up short, the shortfall is shown as mortgage boot.
Delaware Statutory Trusts come with a range of fixed LTV levels, making it straightforward to find an offering that matches your debt-replacement target precisely — without the complexity of arranging new financing on a directly-held property. You can also combine boot calculator results: see how much boot a given structure creates using our 1031 Exchange Boot Calculator.
Educational estimate only. This tool is for general illustration and is not tax, legal, or investment advice. It uses simplifying assumptions and the figures you enter, which may not reflect your situation or current law; depreciation recapture, net investment income tax, state taxes, and other items can change the result materially. Figures are illustrative and not guaranteed. Consult your own qualified tax and legal advisors before acting. Not an offer or solicitation. DST interests are sold only to accredited investors via private placement memorandum. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC; Baker 1031 Investments is independent of ASI.
To defer the entire gain you must buy property of equal or greater value and take on at least as much debt as you paid off — or add cash to make up the difference. Falling short creates taxable mortgage boot.
Yes. Adding cash equal to the debt you paid off offsets mortgage boot just as new financing would.
Use a lower-LTV replacement and cover the gap with cash, or accept some mortgage boot and pay tax on it. DSTs come at a range of fixed LTVs, which makes exact debt matching easier.
