Credit/Debit Taxes on 1031 Exchange

[Fausto Carosella]

As I understand it when purchasing a "replacement property" via a 1031 exchange, prorated rent, HOA and specifically property taxes should not be paid with the proceeds of the relinquished property. However what about when a relinquished property has a CREDIT from taxes.... for example the seller of the relinquished property owed the buyer taxes, AND the buyer owed the seller of the relinquished property taxes as well for a net GAIN to the seller.... I'm assuming a check should NOT BE CUT to the seller? but added to the relinquished funds....?