my 1031 exchange #'s & ?

[Robert Granara]

hello, im doing my research on the 1031 exchange...

my #'s: i purchased a 3 family for $215K and owe $209K...i put $30K into it and have it under agreement for $300K

when the atty sets up the 1031 and we close on the property what amount goes into the 1031 account?...is it just the gain of $55K or do all the proceeds $91K ($300K sale price - $209K mortgage)

thanks

[Bill Exeter]

I'm not sure exactly what you mean by "goes into the exchange," but here are the requirements.

You must acquire property that is equal to or greater in value than the net sales price of the property that you sold, and all of the net proceeds (equity) must be held by the 1031 exchange Qualified Intermediary and reinvested in your acquired property.

And, if you do not already have a Qualifeid Intermediary, we would like to assist you.