Partial 1031 details?

[Bob McKee]

This group has been a tremendous resource for me. Thank you! One thing I am still a little confused on relates to partial exchange. I know that is blasphemy for some of you (haha) but I have my reasons. Simplified Scenario for example purposes: 1) Sell for $700K with Mortgage of $300K 2) Buy 1 property for $300K and $100K down 3) Buy 2nd property for $300K and $100K down 4) After fees it nets me $100K cash that I take out Result: I cover my minimum mortgage threshold by $100K but I fall $100K shy of Minimum Purchase Price AND I take out $100K in cash. Assuming my depreciation is approx $40K (where I pay 25%) - what is the rest of my tax? Do I have to pay 15% on $160K (100+100-40) or some other number (hopefully less that that)? I realize there are other taxes (State, healthcare, etc) - I am just trying to figure out how to calculate the number that gets taxed. Thanks!