These final regulations address the definition of real property under section 1031 and also provide a rule addressing the receipt of personal property that is incidental. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031. For example, if you sold your relinquished property in 2008 and subsequently acquired your like kind replacement property in 2009 your 1031 exchange would be reported on your 2008 Federal income tax return. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. Rather than have the $10,000 profit taxed as a capital gain, the like-kind exchange allows the gain to be "passed on" to the new property used for business. But don’t give up!. After the sale of oil, gas, and mineral interests, a taxpayer then has 1031 days to purchase a new like-kind property with a 1031 exchange. Maximize your gain. 1031 Exchange. For 2021, here are our latest top misconceptions we’ve found that the public has about 1031 Exchanges. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. A 1031 exchange must be used to purchase replacement property that you do not already own. Rules to Keep in Mind when 1031 Exchanging Vacation Property Feb 14, 2022. This $100,000 would be taxable to the extent of the investor’s gain. CPEC1031 is located in Minneapolis, Minnesota and provides nation-wide 1031 exchange qualified intermediary services including the following areas: Minnesota,. In general, you want to avoid boot at all. com , or submit your question through the form. In partial exchanges, the money received, or the value of the relinquished property that is not replaced, is known as “boot” and is taxable as a capital gain. You can 1031 exchange the $300,000 into the replacement property, generating a tax bill on the $20,000 boot. Sales Price – Cost of Sale – Loan Balances = GROSS EQUITY. 00 and $1,500. Enter the following information and our calculator will provide you an idea of. You now have 45 DAYS to Identify up to 3 or more. Search. If you have questions about 'partial 1031 exchanges' or how to refinance after the exchange to get your money out tax-free,. § 1031 in a Nutshell. Defer the tax. Contact us today at our downtown Minneapolis office to learn more about the 1031 process, our services, and to see if you are a good candidate for an exchange. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031. 00 0. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr. WorkSheet #10. (844) 533-1031. Boot results from a difference in value between the original property, known as. “Like-Kind” Property. Cash received (equity boot) or debt not replaced (mortgage boot) is taxable. In any 1031 exchange, you have 180 days in total to complete your exchange. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. 45 / 180 Day Calculator Capital Gains Calculator. In a 1031 exchange, boot refers to any non like-kind property received during the course of a 1031 exchange. The term “boot” is broadly defined as a taxpayer’s receipt of non-like-kind property in a 1031 exchange. Jun. For tax years beginning after December 31, 2022, Pennsylvania will conform its state tax code to Internal Revenue Code §1031. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. Normally, when a taxpayer sells property, gain or loss on the sale is recognized in the tax year in which the sale occurs. Since they did not cash out, no tax payment. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. This is often due to one or more of the following factors: Failure to receive adequately valued replacement property. A 1031 exchange is an excellent tool that allows you to defer the capital gains taxes when you sell real property. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. We are fluent in the rules and regulations of IRC Section 1031 and able to help you navigate your exchange whether you want to receive boot or avoid it at all costs. Calculate Capital Gain Tax Due. 45 /. Line 15 is really the value of boot, which includes the components mentioned earlier. Mike9241. 1031 Exchange, Marilee Hill – Partial Exchanges and Boot . Gain = Owned asset value - (Exchange asset value + boot received - boot paid) Bob's Gain = $60,000 - ($35,000 + $5,000 - $0) = $20,000 . So you're doing a 1031 exchange, you’ve sold your relinquished property, and parked your proceeds with the intermediary. This is okay when a seller desires some cash and is willing to pay some taxes. Some of the most common questions are on the topic of “cashing out. But are all 1031 exchanges 100% tax deferred? Full vs. published June 21, 2023 In the context of a 1031 exchange, “boot” refers to the portion of a transaction that doesn’t meet the tax-free criteria and thus becomes subject to immediate capital. After the exchange, the basis of the office building is $3. Capital Gains Calculator 1031 Glossary FAQs. Defer the tax. This means that your adjusted cost basis is $213,636. Gain is recognized to the extent that net cash and other nonqualifi ed property, known as “boot,” is received. This calculator will help you to determine how much tax deferment you can realize by performing a 1031 tax exchange instead of a taxable sale. commissions, prorated taxes, recording or. Following. This is an "exchange" or swap into something new that is like kind to what was disposed of. May 1, 2023 Video - When to Receive Boot in a Partial 1031 Exchange May 1, 2023. The 1035 exchange provision allows tax-free exchanges of nonqualified annuities. Key Takeaways. 1031 Replacement Calculator; Calculate Your. If you aren’t confident that your QI is reputable and qualified, who knows where you’re sending your funds. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. As discussed more fully below, boot can come in many different forms. Ideally, they want to combine funds from both transactions into one exchange property. But let’s say you’re selling a $1 million property, and you’ve found a $750,000 property that needs $250,000 in improvements. 1031 (k)-1 (j) (2)]. Using a 1031 exchange to "trade up" to a more valuable property is common. This tests only the first two tax years after the exchange is completed. Partial 1031 exchange boot calculator | Partial 1031 exchange boot examples | How is boot taxed? | How to avoid boot | Partial 1031 exchange boot FAQs In a partial 1031 exchange, “boot” refers to any leftover sale proceeds subject to tax. $. a 1031 exchange. Benefits. us. Defer the tax. These iterations of Section 1031 have survived the overhauls of the Internal Revenue Code of 1939, 1954, and the most recent comprehensive revision in Tax Reform Act of 1986. Defer the tax. According to a July 2020 report from the National Association of Realtors: 61% of realtors have handled at least one 1031 exchange transaction since 2016. Basically, we need to know if the boot taxes would be less than the repair. Web input federal capital gains rate (%): Web. This leaves you with $130,000 of capital gains to defer. Sold later absent an 1031 Exchange for $585,000, e. Property sold and yielded a capital gain of $300,000Property identified is only $150,000. of additional equity available to reinvest through a 1031 exchange. The IRS sees this $50,000 as. Here are two specific examples: Kate sells her investment property for $1,000,000. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. Your new property gets the cost basis of $50,000. 11/29/2019. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643. Boot results from a difference in value between the original property, known as. In 2021, Taxpayer A sold the property in a 1031 exchange for $4,000,000 + $500,000 of cash. A partial 1031 exchange is an exchange in which the exchangor receives some like-kind property and also recognizes some taxable gain. What many people don’t realize is that you can do 1031 exchanges of raw land, in addition to constructed properties. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. Maximize your gain. When it comes to buying and selling real estate, timing is everything. Learn about their pros and cons, tax consequences of a partial 1031 exchange (capital gains and depreciation recapture), what a boot is, and what the process involves. D. Ensure compliance with IRS rules and optimize your tax savings. Start Your 1031 Exchange: If you have questions about post exchange refinancing, feel free to call me at 612-643-1031. There are two ways that boot can accidentally be created during a 1031 tax deferred exchange: 1. A property is identified for half the gain of the primary. 3 Things to Remember. To qualify for a 1031 exchange, the relinquished property and the replacement property must be “like-kind. Because of this, it is usually the most beneficial to find property. Defer the tax. If you take cash out and/or you purchase less than you sell, it is considered. So the IRS has placed additional rules for these types of exchanges. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. While capital-gains tax rates are currently at historical lows, tax rules require you to recapture the portion of the gain on the sale that relates to allowable depreciation over the period the asset was held. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. For your convenience we list current Boydton mortgage rates to help real estate investors estimate monthly loan payments & find local lenders. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. By evaluating all options according to how they align with your objectives, the Partial 1031 exchange calculator can determine whether any roadblocks need to clear. A Simple Rule to Remember. 400 W. The standard time period for a like-kind exchange is 180 days. The first thing that happens That's another way to break the money up and get a greater amount of diversity so that you don't have all of your eggs in one basket. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. 1. party in a like-kind exchange, you must file Form 8824 with your tax return for that year. Read on to learn more!. Maximize your gain. S. You can use a 1031 exchange to convert a rental property to a primary residence — or to convert a primary residence into a rental property. Plenti Financial™ is a trade name of 1031 Exchange Advantage®. Vacation and Second Homes Qualify. Receiving mortgage boot. Boot is taxable, which is why it is removed from the exchange transaction. You can do a partial 1031 exchange. 11/29/2019. ID Deadlines & Extensions. Many taxpayers want to know whether it’s a good time for them to sell their property or do a 1031 exchange. What Your Qualified Intermediary Does Once the 1031 Exchange Process Begins May 17, 2020. Understand the requirements of a partial 1031 exchange and how they work. Defer the tax. Start Your 1031 Exchange: If you have questions about partial 1031 exchanges and sales proceeds, feel free to call me at 612-643-1031. Amount of yearly depreciation info_outline. Partial Exchanges. Pros of a Partial 1031 Exchange. Number of years owned. The taxes deferred on the relinquished property (investment property sold) allow for greater net sales proceeds to. WHAT IF WITH A 1031 YOU TAKE OUT "BOOT" OF: Consult your accountant: Estimates: 1031 Exchange: G: Tax Basis: XG: H:. You can find us at our main office located in downtown Minneapolis. This is where you can make use of a 1031 exchange and save these dollars from taxes. 5 million. The portion of the exchange. If you have an urgent cash need, then doing a partial 1031 exchange is your best option. From document preparation to replacement property advice, we’ve got you covered! Reach out to us today to set up a time to chat with our 1031 exchange intermediaries about the details of your exchange. Calculate Capital Gain. Home About. Examples of tax benefits from a failed exchange. At this time, the shopping center’s adjusted depreciable basis is $1. Cost to purchase in 2001 = $135,000. The boot is subject to capital gains tax. The Importance of Communicating with Your Lender in a 1031 Exchange Feb 15, 2022. 1031 proceeds held by QI = $100,000. Either transaction requires careful planning to avoid breaking the law. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. Defer the tax. For example, if you sell a property for $200,000. Contact us today to discuss any questions you may have. A person can conduct as many 1031 exchanges . Read on to learn more! 1031 Exchange Limitations There is no limit to the number of 1031 exchanges a US taxpayer engages in. Note that you can see all of the calculations so you can better understand how the final figures were calculated. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. 1031 Exchange in California: Rules, Requirements, and the Best Companies to Use. 45 Day Deadline: Must identify potential like-kind replacement properties to the qualified intermediary no later than midnight of the 45th calendar day following the close of the relinquished property sale transaction. Any boot received is taxable (to the extent of gain realized on the exchange). Installment Sales and 1031 Like-Kind Exchanges, Part 1. capital gains and depreciation recapture taxes apply to the $120,000 gain ($585,000 minus $465,000 cost basis). 15th Street Suite 700. $. Wait, what. (877) 797-1031. 1031 EA, LLC does not provide, brokerage, legal or accounting services and. capital gains and depreciation recapture taxes apply to the $120,000 gain ($585,000 minus $465,000 cost basis). For many, this is a popular – and effective – strategy through which to grow and diversify a real estate portfolio over time. First. We need specific numbers and a calculation we can use to decide whether we keep the property and pay the possible $35K in repair costs or use the purchase price/cost to invest in something else that was not listed on our 1031 (since we will be paying CG taxes anyway). 1031(a)-3, and 1. Plenti Financial™ is a trade name of 1031 Exchange Advantage®. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. The value of other property received in an exchange is equivalent to The value of other property received in an exchange is equivalent to receiving cash for purposes of calculating taxable gain. So paper such as stock, bonds, and notes are all excluded from 1031 treatment. Under Section 1031, taxpayers can postpone paying this tax if they reinvest the profit in similar property. The Ultimate Guide to a 1031 Exchange Involving a Primary Residence. Maximize your gain. Partial 1031 exchange boot calculator | Partial 1031 exchange boot examples | How is boot taxed? | How to avoid boot | Partial 1031 exchange boot FAQs. To put it in numbers, federal income tax brackets range from 10% for the lowest earners to 37% for the highest earners. . May 1, 2023 Video - When to Receive Boot in a Partial 1031 Exchange May 1, 2023. Defer the tax. Reinvesting Proceeds and Replacing Debt. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. Working with her real estate advisor, Kelly found a mixed-use, multi-tenant building near her home, consisting of two apartments, two stores, and three townhouses. Defer the tax. This 1031 exchange boot guide explains everything you need to know about real estate boot, how it happens, and how you can avoid it. In a partial 1031 exchange, the replacement property has a lower value than the relinquished property. The remaining $50,000 of gain would be taxed at the lower capital gains rate. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. It’s crucial to know your tax deadlines to ensure you have the full 180 days, or that you secure an extension from the IRS. Fitzpatrick, Tracey Nguyen. Consider the scenario where you sell a fully paid-off investment property worth $500k. The Term Like-Kind. Sold later absent an 1031 Exchange for $585,000, e. Defer the tax. Original purchase price ($):The answer is yes. You can have a partial tax deferral if you miss these general benchmarks. Internal Revenue Code, is a way to postpone capital gains tax on the sale of a business or investment property by. Many closers and title professionals have questions about what expenses to put on the closing statement and what to keep off the closing statement so that the parties don't trigger boot. , the acquired property) must be factored into the overall exchange’s cost basis. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment. In April 1994, the IRS published regulations coordinating the deferred like-kind exchange and installment sale rules [reference §1. Our intermediaries help clients throughout the state of Minnesota and around the country. Accordingly, the investor deliberately chooses to take $100,000 in cash boot from the exchange funds. Net Sales Price in 2018 = $225,000. Let’s say you sold a relinquished property for $2 million but you had a $250,000 remaining basis in the relinquished property. 06/03/15. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. In this case, that’s $250,000, so the entire sum would be subject to tax. Resources. Partially Tax Deferred Exchanges. , 15 the Tax Court referred to the regulation as providing a safe harbor. A partial 1031 exchange occurs when either the relinquished property proceeds are not all expended on replacement (s) or the value of the replacement (s) is less than the net sales price. The taxable amount of the transaction. Misconception 1 - I need to do an actual “swap” – property for property with another person interested in exchanging. Capital Gains Calculator 1031 Glossary FAQs. Working closely with experienced tax professionals can help investors take advantage of these tax-planning strategies. Contact us today to discuss any questions you may have. 4. 84% of 1031 exchange properties were held by small investors, up. In a 1031 exchange, they need to be similar types of investment property. Your replacement has a $700,000 basis, also debt free. 1031(k)-1 implement statutory changes. 1031 Exchange. 1031 EA, LLC does not provide, brokerage, legal or accounting services and. Gains from sale O s 1,051 ,ooo Total boot $ 500,000 Amount reinvested O s 551,000 Capital gains tax rate Total tax owed on bootThe Capital Gain Tax Calculator is provided as a tool to estimate Capital gains taxes and should NOT be used as a substitute for the actual tax calculation as CAPITAL GAIN (LOSS): 1031 EXCHANGE SPECIALISTS, INC. COVID-19 pandemic 1031 Extensions. We are fluent in the rules and regulations of IRC Section 1031 and able to help you navigate your exchange whether you want to receive boot or avoid it at all costs. Failed exchanges can be caused by a number of factors, including: Constructive receipt of taxable boot by the taxpayer conducting the exchange. Original purchase price ($): The answer is yes. Cash Boot Example #2. A Delaware Statutory Trust (DST) is a popular 1031 exchange vehicle with a partial ownership structure that allows taxpayers to receive small fractional interests in real estate. A Taxpayer Must Not Receive “Boot” from an exchange in order for a Section 1031 exchange to be completely tax-free. Partial Exchange. The six major rules governing 1031 exchanges are: 1. She wants to do a 1031 exchange into a $325,000 condo. If there is no 1031 exchange, it is the difference between the net sales price and the adjusted cost basis. Analyze Purchase Without An Exchange. Real estate investors selling investment properties can benefit from tax-deferred 1031 exchanges. I've completed one property exchange in my 180 day window, but I haven't yet decided if I'm going to purchase another replacement property from my identified list. Make sure your debts are recorded against the property or that you’re contractually required to dispose of that debt in conjunction with the sale of your old relinquished property. 25. 1031 Exchange Rules;. When doing a 1031 exchange, sometimes it’s beneficial to own the property in a tenancy-in-common, rather than a partnership or LLC. 1031 Exchange Examples. Otherwise, boot should be avoided in order for a 1031 Exchange to be. Leverage; Resources. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. Boot is “unlike” property received in an exchange. . Lines 26-38 Not applicable to 1031 exchanges WorkSheet #10 for Buy-Down only. The Form 8824 is due at the end of the tax year in which you began the transaction, as per the Form 8824 Instructions. Like-Kind Exchange Periods. Legal fees directly related to the exchange of your property would likely fall into this category. Many taxpayers considering a 1031 exchange want to know if they can change their property identification at any point throughout the exchange process. Lesser of boot or exchange expenses (Lesser of. Ok, so I need to know how the taxable basis is determined in a partial 1031 (like kind) exchange. The provision only covers direct annuity exchanges; cashing out an annuity to purchase another annuity will result in tax liability. To pay no tax when executing a 1031 Exchange, you must purchase at least. Receiving mortgage boot. In the beginning of a 1031 deferred exchange, when the closing of the relinquished property occurs, the title company or escrow closing company typically has the responsibility to report the seller/exchangor’s disposition to the IRS on a IRS Form 1099-S. . 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. 1031 Exchange in California: Rules, Requirements, and the Best Companies to Use. If there is no 1031 exchange, it is the difference between the net sales price and the adjusted cost basis. It does not appear that Turbotax makes this calculation for you, nor, does it know to adjust the values in Form 4797 for the reductions for the partially exchanged real estate. First, let’s quickly revisit what “boot” is. The difference is considered boot. Either transaction requires careful planning to avoid breaking the law. Boot paid (line 9 plus line 11, minus line 12) C. May 1, 2023 Video - When to Receive Boot in a Partial 1031 Exchange May 1, 2023. In partial exchanges, the money received, or the value of the relinquished property that is not replaced, is known as “boot” and is taxable as a capital gain. Net amount for Reinvestment. Tax Basis = $90,000. 1031 exchanges can complicate your annual tax reporting, but it's important to be proactive and accurately report your exchange to ensure its success. Requires only 10 inputs into a simple Excel spreadsheet. Start. A partial exchange is similar to a like-kind exchange with boot. In the first scenario, investors are able to take cash out of a property. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031. Many people want to know if the 1031 exchange 180 day period is a hard-and-fast deadline or if there’s flexibility to prolong the exchange period. . The regulations provide that: Give our qualified intermediaries a call today to get your 1031 exchange off the ground. Any boot received is taxable (to the extent of gain realized on the exchange). Analyze Purchase Without An Exchange. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. Let’s say you sold a relinquished property for $2 million but you. Maximize. Download the Excel file and follow the instructions to calculate the adjusted basis, realized gain, recognized gain, and deferred gain of your exchange. Do a Partial 1031 Exchange. Unfortunately, when the Treasury regulations were written for the tax code relating to Section 1031 Congress excluded stocks, bonds, and other evidences of indebtedness. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031. Start Your Exchange: If you have questions about partial 1031 exchanges, feel free to call me at 612-643-1031. No loss can be recognized in a qualifying exchange. The short answer is, yes – it is possible to do a partial 1031 exchange and pocket some of the sales proceeds. The following calculator is a useful tool to determine the capital gain tax . When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. Because boot is taxable, and tax benefits are the main advantage of a 1031 exchange, a partial 1031. Cost of capital improvements info_outline. But many taxpayers aren’t aware of the inner workings of a 1031 exchange. Generally, if you make a like-kind exchange, you are not required to recognize a gain or loss. 1031 Variations; Exchange Fund; Myths; Why. In your case, that means the $100,000 gain you have to report unfortunately has a basis of $0. Any possession that’s movable and owned by an individual. Boot can be notoriously tricky to calculate — but our partial 1031 exchange boot calculator below can help you determine how much boot you’re looking at, as well as your partial 1031 boot tax rate. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. We have been facilitating 1031 exchanges in the Twin Cities and around the country for decades. FORM 8824. Beginning after December 31, 2017, section 1031 like-kind exchange treatment applies only to exchanges of real property held for use in a trade or business or for investment, other than real property held primarily for sale. Is there a partial 1031 exchange. The small vanilla single 1-to-1 exchange where you’re selling one relinquished property in a standard deferred exchange and acquiring one replacement property might cost between $850. the qualified intermediary returns to the exchanger $20,000 (cash boot) and endorses the $20,000 note (non-like. a person can still complete an exchange even if they have partial taxation. 1031. Rather, only the amount of boot received by the. There is a safe harbor for properties in a rental pool that permits up to either: 14 days a year; or. Some qualified opportunity zone investments are regulated as Securities, and you must us write certain “accredited investor” standards in order to participate in them. The excess funds from the exchange can be used for any reason you want since they will be taxed. 2023 Video - When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023. When to Receive Boot in a Partial 1031 Exchange May 1, 2023 April 2023 Apr 26, 2023 Video -. Ms. If it's not eligible for 1031 because it hasn't been held for a qualified purpose then it's not a good candidate for 1031. If you want to meet the conditions for a 1031 exchange, you much purchase a replacement property for at least $650,000. Understand the process, tradeoffs, and how to determine if it is a good fit for your financial goals. A 1031 Exchange is a real estate transaction that allows real estate investors to defer capital gains taxes on the profitable sale of an investment property. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary FAQs The Napkin Test Testimonials & Case Studies. Explore the benefits and requirements of partial 1031 exchanges with our expert guidance. In order to keep the process moving forward, the goal is to purchase the first of three potential properties within 45 days of the original sale. 45 / 180 Day Calculator Capital Gains Calculator 1031 Glossary. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031. So, you made a long-term capital gain of $110,000 and $48,500 in depreciation recapture, which will be treated as ordinary income. There was a single-tenant commercial building that the taxpayer was considering buying as the part of a 1031 exchange. Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.