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Level 10
October 14, 2023

2050609

  • October 14, 2023
  • 3 replies
  • 20 views

The following diagnostic is generating:

Asset # {PrefixNum} : Under the newly enacted "Tax Cuts and Jobs Act", like kind exchanges completed after December 31, 2017 are limited to exchanges of real property that are not primarily held for resale. A transition rule does provide relief for a transaction if the property given is disposed of, or if the replacement property is received prior to January 1, 2018. Please review the disposition to confirm it qualifies as a like kind exchange under the new law. If not, the disposition should be entered as a normal disposition and not like kind exchange.

3 replies

Level 2
August 9, 2022

I put a "1" in Section 1250 property and the diagnostic went away.

Intuit Community Champion
October 13, 2022

@Coi You rock!  Thank you for posting this!

*If this (or another answer/reply) solves your problem, please click 'Accept as Solution' to get this post out of the 'Unanswered' queue of posts.*
IntuitAlicia
Employee
October 16, 2023

This diagnostic is informational and will not clear. The diagnostic is produced to provide details regarding the LKE so that you can review the exchange itself and make sure that it does qualify for Federal purposes.

Simply check the box to indicate that it's been reviewed and continue working on your return. This diagnostic will not interrupt an e-file transmission.