Pammer
Level 2

Cash received would be cash received on the sale - includes property taxes and interest as these items are not part of the 1031 exchange.  It would also include cash received on the purchase of replacement property (property taxes, loan fees paid out).  Any cash out is taxable on line 15 of form 8824 and flows to form 4797.

If the property taxes credited on your replacement property are larger than other expenses paid through the HUD-1, it is not supposed to net the cash received...this is where I get stuck.

Also, if the old mortgage pay-off is larger than your new mortgage, the difference is taxable.  You cannot pay $$ to reduce the difference on either of your HUD-1's.

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