Let’s say I Sell a 500k property, of which 300k is profit, and 100k was principal and 100k a loan payoff.
At sale closing, I send 300k to 1031 intermediary, 100k to bank (loan payoff), and 100k principal back to savings account.
If I go buy a property for 550k (300k from intermediary, 150k from savings (original principle plus extra 50k principal), and 100k from a new mortgage, will I be subject to a taxable event?
I THINK I messed up by receiving the principle directly instead of sending it to the intermediary, thus making it taxible. I THINK the mortgage payoff was correct, and non-taxable. If that assumption is correct, is there anything I can do to correct it now that the disbursements have been made?