do not enter the $ 22,000 loan payment as "The value of the mortgages/loans TRANSFERRED..." because it implies the other exchanger ( the buyer) in the transaction either assumed the loan or paid off as part of the buying process. Generally what is happening in a delayed exchange , you employ a qualified intermediary ( QI), whom sells the give-up property and holds the net amounts ( even though you may be doing a lot of the leg work and signing). Thus the given up property is held subject to zero mortgages outstanding. You get to carry the unused depreciation, the un-taxed gain when you acquire the new property -- again the QI buys it for you and does a simultaneous swap of ownership thus achieving the 1031 exchange . Does this look like your situation ?
