---
title: Partial 1031 Exchange
description: To the extent less than 100% of the proceeds of a relinquished property are reinvested, the difference will result in mortgage boot and/or cash boot.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Partial 1031 Exchange](https://www.realized1031.com/glossary/partial-exchange)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Nov 10, 2015 6:00:00 AM

To the extent less than 100% of the proceeds of a [relinquished property](https://www.realized1031.com/glossary/relinquished-property) are reinvested, the difference will result in mortgage boot and/or cash boot. The [boot](https://www.realized1031.com/glossary/boot) is subject to [depreciation recapture](https://www.realized1031.com/glossary/depreciation-recapture) and [capital gains tax](https://www.realized1031.com/glossary/capital-gain-tax) while the amount reinvested is on a [tax deferred](https://www.realized1031.com/glossary/tax-deferred) basis.

As an example calculation, if the sale of an investment property generated $100,000 of net proceeds, but only $80,000 was reinvested, the $80,000 could be tax deferred while the $20,000 of retained proceeds would be considered boot and subject to capital gains and depreciation recapture taxes.

[View full post](https://www.realized1031.com/glossary/partial-exchange)

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