1031 Exchange - Fail to Purchase All Identified Properties

[John Nguyen]

Hello everyone, 

Hope if anyone could help me with this situation.

First-timers doing 1031 exchange. My brother and I sold a rental property for$345,000 in August 10. Purchased at $220,000.

Sold               $345,000

First Mort      $163,000

HELOC $47,000

Selling Cost     $15,0000

Net Proceed  $120,000  (50/50 split )

Each has $60k in separate 1031 exchange fund. We were able to identify 2 properties (A & B). 

Property A - listed at $229k and in contract at $225k - solid deal with loan $169,000 and total down payment is $56k ($28k comes from each of our separate 1031 exchange fund)

We are both in the loan and title for property A and B per QI instruction.

Property B - listed at $275k - missed the opportunity - backup offer at $265k) (almost no chance to purchase it)

What happens if we can not purchase property B? What tax consequences on each 30k remaining in each of our 1031 exchange.? What tax estimate on cash and mortgage/HELOC boots?

Any solutions to defer tax?

Can we buy any other properties with remain fund?

How long do we have to hold new replacement properties before doing another 1031?

Thank you very much BP Community!