To fully defer the gain you must reinvest all of the sales proceeds. 1031 Exchange: How it Works - TurboTax Tax Tips & Videos
You cannot designate specific dollars out of the sales proceeds as being your basis. If you take out $60,000 from the sales proceeds, this will be treated as not deferring $60,000 of gain and will be taxable.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
