Tax Due when selling part of 1031 Exchanged Property

[Richard Chang]

Hi BP'ers and Pros,

I am considering buying multiple SFRs in a 1031 Exchange of my Tri-plex.

Obviously, this will defer any taxes, capital gains etc.

So for a simple example, I will buy 4 x 250K = $1M in a 1031 Exchange.

Let's say my total tax burden would have been 300K.

So, if in the future I decide to sell one of the 4 houses that were part of a 1031 exchange

at say 250K ( same price ) then would I pay a prorated capital gains tax of  75K ( 1/4 of 300K ) or would then entire tax on $1M become due ?

Thanks, R