Calculators · Proceeds
Net Proceeds and Exchange Equity Calculator
From contract price to the wire the qualified intermediary will hold: commissions, closing costs, prorations, deposits and the loan payoff, with the amount that must be reinvested.
What this calculator does
Two different numbers come out of a closing. The amount realized, which drives your gain, is the price less selling costs. The net proceeds, which is what the intermediary wires into the exchange account, is that figure less the loan payoff and the credits that pass to the buyer. The exchange rules care about both: all of the net equity has to be reinvested, and all of the debt paid off has to be replaced or covered with cash.
This worksheet separates the two so you can see the equity you must reinvest and the debt you must replace. For the tax on the gain itself use the 1031 exchange calculator.
Net proceeds worksheet
How the numbers are calculated
Amount realized = contract price minus exchange expenses (commission, title, escrow, transfer tax, recording). Net proceeds = amount realized minus loan payoff minus credits to the buyer that are not exchange expenses (prorated rent, security deposits, repair credits). Debt to replace = the loan payoff plus any other liens paid off at closing.
Prorations and deposits are treated as non-exchange items under Reg. section 1.1031(k)-1(g)(7): they reduce cash but do not reduce the gain and can create boot if paid from exchange funds. The worksheet shows them separately for that reason.
Questions about this calculator
Is the loan payoff part of my gain?
The payoff does not reduce your gain; it only reduces the cash. Gain is amount realized less adjusted basis, and amount realized includes the debt the buyer's money paid off. See the buyer's money goes to my lender.
Which costs are exchange expenses?
Commissions, title and escrow fees, transfer taxes and recording fees are generally treated as exchange expenses that reduce boot. Prorated rent, security deposits and loan payoffs are not. See closing costs paid from exchange funds.
Does the intermediary hold the whole net amount?
Yes. Every dollar of net proceeds must go to the qualified intermediary; anything paid to you at closing is cash boot. See proceeds wired to me by mistake.
Sources
Figures checked on September 30, 2026. Rates and thresholds change each year; this page is general information, not tax or legal advice.
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