1031 Exchange Amount to Invest

[Diane Tycangco]

Hello everyone, I am thinking about doing a 1031 exchange.  How do I calculate how much I should invest in the new property?  Do I get the sale proceeds, subtract loan balance payment, the closing costs of buying the property I sold and selling costs = the downpayment plus closing costs of the new property?  Or is it just sales proceeds minus loans and then I have to come up with cash for the closing costs of the new property? Thanks! 

[Bill B.]

Selling price minus selling costs.  (Commissions, concessions, transfer costs.)

Doesn’t matter if you own it outright or owe more than it’s worth.

All “cash” must be reinvested. 

You must not receive the funds, they must be held by QI.