Help - Mortgage Boot and Taxes

[Liz J.]

Hi. I am in the middle of a 1031 exchange. I have a questions about mortgage boot. I will have $220k in mortgage boot because I can't get a new mortgage. I have $400k at the intermediary. And I am spending all of it on the new property. The sale net was $600k net. My total gain if I were to scrap the exchange altogether is $376k.  The missing piece to me is how the mortgage boot transfers from the intermediary to me to my taxes... ie. Does is look like my gain now is 220k versus 376k? Or is it somehow allocated proportionally... ie... the mortgage boot is about 37% of the overall 600k I was supposed to replace so now instead of a gain of 376 I would take 37% of that?