Pay off debt tax-free in 1031 exchange

[Jeff Wang]

Hello,

Many years ago, my family helped me purchase a house and gave me a portion of the downpayment. Fast forward to today and I've made a nice profit on the house.  I'm currently in the process of doing a 1031 exchange and would like to pay my family back the borrowed money.

Can I do this at the close of escrow without incurring taxes? If so, how would I do it?

thanks