Selling a property acquired through 1031 exchange

[Janice R.]

All 1031 experts!

I sold a condo in 2006 and used a 1031 exchange to buy a townhouse.  This year we will sell the townhouse.  I'm having a hard time calculating the taxes owed.  Depending the taxes, we may just to another 1031.

Here's some estimated numbers from 2006 (from Form 8824):

FMV of condo: $196000

Adjusted Basis of condo:  $104000

FMV Townhouse: $353000 (proceeds plus cash from Home Equity Loan)

Realized gain (line 19):  $249000

Deferred gain:  $249000

Basis of townhouse (line 25):  $104000

SO,

What happens when we sell (may net about $300k)?  Other information:

Capital improvements 2007-2015:  $50000

Depreciation $7000 per year

Thank you!!