Understanding your potential taxable gain is an important part of planning a 1031 exchange. This month, we’re breaking down three concepts that can affect the numbers: adjusted cost basis, depreciation recapture, and boot.
Adjusted Cost Basis for Real Estate: Calculator + 1031 Exchange Strategy Guide
Your adjusted cost basis is a key part of determining taxable gain when selling investment property. Learn what can increase or decrease basis, how it’s calculated, and why it matters when considering a 1031 exchange.
Depreciation can provide valuable tax benefits while you own an investment property—but it can also affect your tax liability when you sell. See how depreciation recapture works and where a 1031 exchange may come into play.
A 1031 exchange can defer gain, but certain cash, debt relief, or other non-like-kind property received in the exchange may be taxable. Learn what “boot” is and how it can affect the amount of gain you recognize.
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Now Streaming: The 1031 Brief Podcast
We’re bringing 1031 exchange education to a new format. The 1031 Brief features practical insights, expert conversations, and interviews with industry leaders. We break down real estate, tax, and 1031 exchange concepts in plain English without the hype and without burying the answer under jargon.
Listen or watch on your preferred podcast platform or YouTube.
Your 1031 Exchange Expert
Jennifer Pendzick
Business Development Manager and Counsel 631-461-1210 | jpendzick@firstam.com
First American Exchange Company, LLC, a Qualified Intermediary, is not a financial or real estate broker, agent or salesperson, and is precluded from giving financial, real estate, tax or legal advice. Consult with your financial, real estate, tax or legal advisor about your specific circumstances. First American Exchange Company, LLC makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, and First American Exchange Company are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.
