How will my 1031 boot be taxed?

Question

In the USA I'm working on a 1031 exchange. I'm having trouble finding information on how a boot (if I take one) will be taxed.
I'm closing on my sale for $700k. I will have a capital gain of $550k.
I have a mortgage of $200k.
If I buy something new for $600k, leaving me with a $100k boot, how will that $100k be taxed? I know it will be taxed but how much?
Will the entire $100k be a gain? Will that change the capital basis of this new property for future 1031 exchanges?

Orange Coast- reinstate Monica · Accepted Answer

Assuming there was a $200k mortgage on the relinquished property, then there is no 'mortgage boot', because there is a $200k mortgage on the replacement property.
You have the $100k 'equity boot' as you explained. It is fully taxable at your personal capital gains rate. Federal tax rate calculator here. Add your state income tax rate to this federal rate to find your total capital gains tax rate.
You can avoid an equity boot altogether, e.g. if you buy two replacement properties rather than one.

How will my 1031 boot be taxed?

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