Question about trading up
I think I have missed this aspect of 1031 exchanges. Can anyone clarify for me? Thanks - Here's my example. I have a mortgaged rental property SFH. The original sale price was $154,500. I currently owe about $130k and I plan to sell it fairly soon. I should clear about $215,000 when I sell it giving me $85000 left over. My plan was to use that money to purchase a duplex in another state for the full amount in cash, but now I'm reading about the new purchase property has to cost more than the house I sold? Is that how much I sold it for? How much I bought it for? More than the $85000? Trying to figure out how much I need to pay for the new property. Thanks!