How to calculate 1031 Boot Taxes

[Karen Seale]

Hello everyone,

We have been searching the posts here on BP and still haven't really found a specific answer to our question.  How do you calculate tax on a  1031 Boot?  Here's our situation:   We sold one property and are buying 5.  We may need to drop one of the 5 and want to know what the tax consequences are.  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).  Basically, we need to know if the boot taxes would be less than the repair costs of the property.

Thanks in advance for your help!

Karen