Cost bais on 1031 exchange

[Drew T.]

Hello,

-I cash-out refi'd a SFR approx 3 months ago. Had a unsolicited buyer approach and make an offer to buy my SFR last month. I accepted the offer, Purhcase Agreement has been signed. Can I still do a 1031 exchange, or reverse exchange depending on closing date, into another RE investment? If so, does the Cash-out refi my costs basis...from my understanding no, didn't invest any of the cash to improve the SFR.

- My current costs basis is around $94k (without the cashout refi affecting costs basis from my understanding). Property sale is $165k. Mortgage balance after cashout refi ~$127k, so I would have ~$38K cash after payoff. However, with my tax liability based on the current costs basis of $94k. Can I take some of my cashout refi money as part of my 1031 exchange investment to invest all of the "proceeds", so I don't have a tax laibility after the 1031?

Thanks