Possible first time 1031 major blunder!!

[Keith Jackson]

Hi Everyone...first timer 1031-er here and thinking I may have grossly misunderstood the process recently.

I just opened one 1031 and used it to purchase one property and am considering another right away due to pending sale of rental property. My question is general and regards to my first 1031. I only found out about 1031 the week we were selling and may have made a big mistake. I sent all the proceeds to the 1031.  My plan was to really just offset the gain we made, but could not find any answers in the hasty timeframe I was on.

The properties were an inheritance for my wife and had a stated value combined of 290K. The sale price was higher at 395K, less lots of expenses which brought the net sale to 353K.  All 353K went to the 1031. I really only wanted to offset the gain between the 290K and the 395K. So I bought a property already for 105K and used 1031 to fund it. 

 I would like to obtain the remaining proceeds of about 248K but am now getting the impression that by committing all the proceeds to the 1031 as I did, that somehow appears that we are looking at a full taxable payment of 395K if we do not make a purchase of that amount...or at least to the $353K amount. 

I am hoping for a general answer to this, not to pin you down. I also hope to know this before I commit to another 1031 for this upcoming sale. Thanks!!