1031 Exchange - Downpayment on target property
Newbie trying to understand 1031. I know much has been discussed but not finding answer to these particulars. Any input appreciated!
Say I am able to sell my current property for $400k.
Loan balance = $200K. Purchase original price was $250K. A gain of $150K.
I need to purchase in kind a subject property also valued at $400K.
Do I have to put $150K of the sale into the property since that was the gain?
Assuming 8% of sale goes to fees and expenses ($30Kish - would love that to be less!)
$400k Sale minus loan balance ($200K) minus sale expenses ($30K) minus deposit ($100K) = $70K
If I have to put $150K into it that $70K is reduced to $20K...which I'd be OK with...$70 would be better though.
Any help appreciated!
TN