In the USA I'm working on a 1031 exchange. I'm having trouble finding information on how a boot (if I take one) will be taxed.
I'm closing on my sale for $700k. I will have a capital gain of $550k. I have a mortgage of $200k.
If I buy something new for $600k, leaving me with a $100k boot, how will that $100k be taxed? I know it will be taxed but how much?
Will the entire $100k be a gain? Will that change the capital basis of this new property for future 1031 exchanges?