CAN IT BE A 1031 EXCHNAGE IS THE REOLACEMENT PROPERTY COSTS $100,000 LESS THAT THE PROPERTY SOLD

[abctax55 · Accepted solution]

Yes...but some/most/all of the realized gain may recognized and taxed.

[Accountant-Man]

Sounds like $100,000 of boot, taxable to the extent there is at least $100,000 of gain.

[George4Tacks]

https://www.google.com/search?q=1031+worksheet will list many results. The first I see is a spreadsheet that could be very helpful, then second is a worksheet that will hopefully lead to the same result as the first. I use Tax Tools, but it costs some money (A very good investment). Do the worksheet and you will probably see at least some taxable income, but it is still a 1031, providing all the timing is correct. 

You may be able to do some improvements on the replacement to reduce gain http://www.exeter1031.com/article_improvement_1031_exchanges.aspx