Abhay Bhargava
Level 2
Monday
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Client surrendered property to State due to involuntary takeover by State of a hotel to expand roadway in April 2024. Client intends to do 1033 exchange which gives him 2 years to buy another property. Since there is no new property identified/purchased by the end of 2024, how should deferment of taxes takes place. Is it still thru from 8824?
George4Tacks
Level 15
Monday
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How do I enter a Condemnation of Property?
To report the deferment of the gain on Form 4797 under Section 1033:
Individual
- Go to Screen 17, Dispositions.
- Enter the Description, Date acquired, Date sold, Sales price (if any) and Cost or basis.
- Scroll down to the Form 4797 section.
- Enter the appropriate amount or a -1 in Depreciation allowed (-1 = none, triggers 4797).
- Scroll down to the Overrides section.
- Enter a -1 in Total gain (loss) [O].
- Go to Screen 46, Elections.
- Click on Election 1 from the top left navigation panel, or click on Add.
- Scroll down to the Other Election section.
- Hold down Ctrl+E in Election title and enter the applicable information.
- Click OK.
- Hold down Ctrl+E in Election text to enter the applicable information. (See the Election Text section below for more information.)
- Click OK.
Answers are easy. Questions are hard!