MORTGAGE OVER BASIS TAX PROBLEM

[Chas Morris]

I have a client who has recently refinanced an apartment building that he has owned for 16 years. He is now interested in doing a 1031 Tax-Deferred Exchange. He was recently informed that he might be facing a mortgage over basis problem. His previous depreciation schedule was for 20 years. What is the best way for him to move up into a larger building and avoid or defer having to pay Capital Gains? :roll: