1031 - HELP - I'm so confused

[Daniel Pitner]

As the title says, I'm SO confused. I'll get right to the point: 
I'm not sure how much I need to reinvest to do a 1031 and how much of a purchase price I need to purchase at. Everything I read says I have to purchase a property of the same value as the one I'm selling, but other things say it's just the same value of the gains. 

Here are the details: 
I'm going through a divorce and am forced to sell a property that isn't exempt from gains. 

Sale Price: $525k
Purchase Price: $325k
Mortgage Left: $268000
Estimated Gains: 224k
My portion of the gains (after 50/50 split with wife): $112,000

Questions
-Do I have to purchase a home of $525k with my $112k or simply a home of $112k or higher? 

[Bill B.]

If you sell for $525k and it costs you $35k in “selling costs” (commissions, title insurance, concessions, etc.) then you need to buy $490k. If you sell for $560k and net $525 after those costs, you have to spend $525k. 

You must reinvest all “cash” $525k (if that’s net) minus $268k mortgage is $257k. 

You must buy in the same “tax name” as you sell  if you’re married filing jointly I’m pretty sure you can’t do a 1031 on just “your half”

Ps. Your “gain” isn’t $224k. It’s selling price $525k, minus buying price $325k, or $200k. Even less if you have selling costs. 

Talk to the expert @Dave Foster if you need further clarification