1031 Exchange with a seller credit, is the seller credit taxable?

[Samson Kay]

Anyone ever do a 1031 Exchange with a seller credit before? I have an accepted offer on a property where i will put 20% down on the deal and at close the seller will credit me back 10% of the deal. So in essense will only put down 10% that comes out of my 1031 exchange. There will still be 20% in equity in the deal though so conventional financing shouldnt be an issue. Basically the 10% credit will come out of the 80% that the seller gets at closing. 

My question is since im defering taxes by swapping into another property, but im getting money at closing, Do I get taxed on the 10% at closing or is this basically like a cash out refinance where the money i take out of the equity is not taxable?