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Proceeds vs Profit on a 1031 Sale
Reading some 1031 articles on BP and it is a little confusing that the term proceeds and profits are being used interchangeably.
From: https://www.biggerpockets.com/...
"Also, all the proceeds from the sale need to be reinvested. So, if I made $100K, all of that needs to be moved over. Or say I made $200K, the new property could be $201K or even $1 million. The point is the new property has to get purchased for more than the price of the old, and I have to roll all the profits over to a new property held in the same entity."
From my understanding, proceeds and profits are two different things. Lets use this example: Purchase price of investment property is 100k, with 80k in outstanding mortgage. Property is sold at 150k to be 1031X'd. In this example, the sales proceeds is 70k (150k - 80k), while the profit is 50k (150k - 100k). Which amount will need to be reinvested in the new deal?