wasn't there separate purchase prices stipulated for each replacement property. there should have been. if not contact the QI.
if you only had $3500 left how did you come up with any additional equity needed to close on the second property. put personal cash in? take out a mortgage?
we can't see the closing documents but it seems some information is missing.
purchase price of property 1
divided by purchase price of property 1 and 2
times the deferred gain is the amount of deferred gain to allocate to property 1 the rest goes to property 2 (the cash that the QI used to close month properties has no relevance here)
purchase price of property 1 reduced by the allocable portion of the deferred gain
is its net basis. from this a portion needs to be allocated to land based on the FMV of the land to the total FMV of the property times the net basis
the same is done for property 2
