1031 exchange sale without repurchase

I live in Japan. I have been here for 7 years. I have a townhouse in California that I have a loan on. I'm building a home in another part of the state and have taken a 2nd out on my town house to finish paying off the new house. I would like to sell the townhouse to complete payment on my new house. Do I have to pay capital gain tax.

Dear G: Unfortunately your question can be answered in one word. YES. Remember gain realized and size of mortgage have little or nothing to do with each other
Sincerely,
Steven W. Hickox, Attorney & President
www.1031x.com
1-888-899-1031