1031 question about cap gain

[Bill Wagers]

Ok so I sold a property for 1,050,000 cost basis was 175 exchanged for another property for 860k. I was thinking my capital gain would only be 15k. Accountant says I will owe tax on the whole 190k I got back. Man I hope he's wrong that was a costly mistake if not. I was thinking my cost basis 175k would come off the 190k I got back

[Matt Devincenzo]

Unfortunately he's correct...any funds you keep are profit first, then basis. It's too bad no one shared this with you during the transaction since several people involved with the deal surely knew this requirement.