It's something though that your accountant can explain and probably will account for on the form 8824 to record the 1031.If the deficit goes the other direction you're really better off keeping that away from the exchange because they're really current expenses that can provide you current year deductions rather than getting capitalized with the property.It's a dilemma because you'd be technically correct taking the cash difference. 

How can it be that we have record-high federal and trade deficits, and record low interest rates (even before the current Corona scare)?   

Everybody is in this together and prepared to do whatever it takes to work through this so don’t worry you will not be loosing your property and do not deplete your reserves trying to make up any deficits.  

Is the deficit due at move-out? 

Already a deficit for capex.

The deficits are significantly bigger this time around. 

Most cities and states were basically running deficits before this happened so we will likely be hearing about municipal and state bankruptcies if this lasts for a while. 

Our deficit and debt are staggeringly massive, and there will come a time when those debts will be due.

The government is not going to get as much taxes during this time so there will be another deficit there as well.  

Deficit Reduction Act of 1984, Pub.