I'm looking to execute a 1031 exchange (in USA) but not on the entire amount of the sale.

For example say that I bought a property for $200k with $100k mortgage and I sell it for $300k. Ignoring depreciation, my capital gain is $100k and with no exchange I would be taxed on that amount.

If I made an exchange into a new property for which I paid $300k, taking a $100k mortgage it would not create a taxable event.

What if l bought a property for $250k, taking a $75k mortgage?

Is my capital gain calculated against $50k? Or some other number?

Documentation I've found says that this is permitted but is unclear on the basis for the tax burden.

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