Replacement Property & Debt Matching

The napkin test: trade equal or up in value, reinvest all equity, replace the debt you pay off.

Buying below the target value or reinvesting less than all equity does not fail the exchange — it creates a partial exchange, with the shortfall taxed as boot.

This calculator is a simplified educational illustration, not tax or investment advice. It uses the figures you enter and standard federal rates without your full tax picture (basis adjustments, carryforwards, AMT, state specifics, and filing details are not modeled). Actual results are determined by your tax returns as prepared by your CPA. Review the PPM for any investment you consider and confirm every figure with your CPA and attorney before acting.

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