Question About Capital Gains

[Erika C.]

Hi Everyone,

Does anyone know if you still get taxed on capital gains if you do a 1031 exchange and you only put some of your sale profit into a new property?

For example - you make a total profit of $545,000 before capital gains tax and you buy a $300,000 property. Do you still pay capital gains if you don’t roll all of your profit into the next property?

Just was wondering :) Appreciate any knowledge you can pass along.

Cheers,

Erika