1031X minimum requirements

[Bill Ramsour]

I'm trying to understand the exact requirements on a 1031, but keep getting confused. I know... "talk to a pro for my specific needs"... and i will before taking action, but I'd like to understand my options before paying someone for info.

This house was my residence, then a few years ago i moved out and started renting it out. These numbers are appropriate to make math easy...

My situation:

- purchased for $160k.

- $15k in depreciation

- looking to sell it for around $250k

- i currently owe $120k on the mortgage.

- for simplicity, assuming about $20k in cost to sell (realtor, closing, etc.)

I think this means:

- my basis $145k (160-15)

- my net sale price is $230 (250-20)

- i walk away with $110 in cash (230-120)

- of that cash, $70k is "taxable gains", $15k is taxed as "depreciation recapture", and $25 is just mine.

So, i have a few questions:

1. Any mistakes in my baseline understanding above?

2. For the house(s) i purchase with the exchange, what is the minimum value of the purchase? $250? $230? $110? $85? It seems to me like it should be $110 or $85 because it it just feels odd that the IRS would require me to move into a situation where i have to get a new loan, or invest more cash.

3. How much cash do i have to put into the purchase? $110? $85? 20%?

4. Let's imagine it's a future date, and this new place has appreciated by $30k and been depreciated by $20k. If i sold, would i owe on $100k in gains and $35k in recapture? Or just the new $30k and $20k? What if instead of selling at that point, i moved in for 2+ years, then sold? All gains and recapture forgiven?

Thanks for your help!

Bill