1033 Cash Out Calculator

How much of your award you can keep in cash and still put off all of the tax on your gain, at different DST loan-to-values (LTVs). Each row of the table is one LTV. Type your own LTV in the last box and it gets its own green row and appears in the green box.

In a 1033 exchange, all of your gain is put off when your replacement property costs at least your net award. The cost counts the loans that come with the property, not just your cash. So the more debt a DST carries, the less of your own cash it takes to reach that cost, and the rest of your cash can stay with you.

Example: a $2,000,000 net award and DSTs at 60% LTV. $800,000 of your cash pays for $2,000,000 of DSTs ($800,000 of equity plus $1,200,000 of DST debt).

Your total award less the costs of getting it, such as legal, appraisal and engineering fees. It is what your DSTs must cost to put off all of your gain. A loan paid off out of the award is part of the award; it does not reduce the net award.

It is what you paid for the property plus improvements, less the depreciation taken and any gain deferred from an earlier exchange. You do not need it to see how much cash you can keep; that comes from your award, the loan paid off and your costs. Add it to see the gain deferred. If you do not have the exact figure, use your best estimate; your CPA has the final amount.

The award less any loan paid off out of it and the costs of getting it. It is the cash you actually have. Equity Invested comes out of this, and what is left is the cash you keep.

Say you were paid $1,000,000, a $500,000 loan was paid off out of it, and getting the award cost $50,000.

1. Your net award is $950,000. To defer all of your gain, your DSTs, counting their debt, must cost at least $950,000.
2. After the loan payoff and costs, you have $450,000 in hand.
3. At 50% LTV, the DSTs’ debt covers $475,000 and your cash must cover the other $475,000. That is $25,000 more than you have, so the table shows “Add $25,000”. Adding it lets the DSTs cost your full $950,000, so all of your gain is still deferred.
4. At 60% LTV, your cash covers $380,000, so you keep $70,000.

The loan already took part of your award, but your DSTs still have to cost your full net award. You keep cash only once the DSTs carry enough debt to cover what the loan took.

In the offering materials for the DST. It is the DST’s debt divided by its total value. If you are combining several DSTs, use the overall LTV of the mix.

Because every row assumes the DSTs cost your full net award, which puts off all of your gain. Only the split between your cash and the DST debt changes from row to row. To see what happens if you reinvest less, use the 1033 Exchange Calculator.

No. A DST does not count as replacement property for a home or other property you did not hold for business or investment. This calculator is for business or investment real estate.

Your replacement deadline, severance damages, special assessments, a partial taking, a home sale exclusion and extensions of the replacement period. The 1033 Exchange Calculator shows your deadline and the tax if you reinvest less than your net award. Your tax advisor has the final word.