Note this calculation gets worse if you recognize the declining value of currency.  

Or any amount of cash you take out from the exchange are considered to be profit. 

the note is converted or exchanged for credits?  

Use 1031 Exchanges to Defer TaxesIf you’re selling a property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another property.

So yes you can exchange it to save capital gains taxes on $266k plus 19 years of depreciation recapture.

While my husband and his ex make a similar income and do not exchange child support due to us pointing that out in court a couple of years ago, she actively request all financial documents that she possibly can and examines our taxes, etc. 

I have it all set up for a 1031 exchange and I am now under the 45 day countdown.

I BELIEVE you can only exchange the real estate portion of your business.

., commissions, fees) and consider a 1031 exchange to defer gains by reinvesting in another property.This post does not create a CPA-Client relationship.

To wit, people might find this thread and exchange for years to come (I am cognizant of that future audience as I write this).