1031 Mortgage Boot multiple owners

[Tim Gara]

I own a building with another LLC as Tenants in Common. My LLC owns 70% and the other owner's LLC owns 30% deeded as TIC. We have a loan of $1million and both LLCs named on the loan although it's not specified 70/30 on the loan docs.
When we sell and roll proceeds into separate 1031 projects how is the mortgage boot calculated? Do I have 70% of debt and he has 30% debt, or is it 50/50 or does he have a million dollar mortgage as do I? 

[Dave Foster]

@Tim Gara, You don't have to go that route to calculate it.  The mortgage is paid off as part of the sale leaving net proceeds.  The net proceeds would be allocated 70/30.  And for purposes of the 1031 exchange the net sales price would also be allocatedo 70/30.  

Your responsibility to defer all tax is to purchase at least as much as your net sale (70% of the total net sales price) and to use all of your net proceeds to do that (70% of the total net proceeds).

How you accomplish that and with how much debt is totally up to you