Partial 1031 exchange

[Matt Smith]

I am planning to do a partial 1031 exchange but I am confused.

- I thought the rules were that in order to do a 1031 exchange I need to buy a property of at least the SAME (or more) value of the net sale of the previous one. Is it true? If not, then I "just" have to pay taxes on the difference (net sale of the old home minus purchase price of the new home)

- Can I use the closing cost amount of the old and new home as part of the tax free money I can spend from the 1031 exchange or these closing cost are purely out of pocket amounts?