I apologize sjrcpa. This first posting of a situation that confounded me caused me to initially use low figures as 'an example' that I thought would convey the questions I can't answer in how to input the transaction into the program. The client sold the property for 4mil, took down 500K and holds a mtge for 3.5mil. So..after your initial response 'sounds like you have a failed 1031 exchange', I then posted the facts regarding the down payment (500K) and the remainder 266K after fees, as being the amount to use in a 1031 exchange to buy the new rental property which cost 356K. I thank you for your perseverance and assistance to bring me clarity. 

Sincerely, Robert