Capital Gain and 1031 exchange

[Darius Moezinia]

do you have capital gain tax liability if the purchase price of the new investment property is less than the net proceeds of the one you are selling in a 1031 exchange? (Net proceed, includes Escrow fees, Title, 6% sales commission, credit to buyer, transfer tax and all the usual fees for recording and ..... which you do not have control over. In this case it was a cash purchase and no financing involved)