In 1033 exchange due involuntary takeover of property by state, how do I show deferred gain in 1065? Thru form 8824 or some other way?

[Abhay Bhargava]

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]

https://accountants.intuit.com/support/en-us/help-article/federal-taxes/entering-1033-election-invol...

How do I enter a Condemnation of Property?

To report the deferment of the gain on Form 4797 under Section 1033:

Individual

1. Go to Screen 17, Dispositions.
2. Enter the Description, Date acquired, Date sold, Sales price (if any) and Cost or basis.
3. Scroll down to the Form 4797 section.
4. Enter the appropriate amount or a -1 in Depreciation allowed (-1 = none, triggers 4797).
5. Scroll down to the Overrides section.
6. Enter a -1 in Total gain (loss) [O].
7. Go to Screen 46, Elections.
8. Click on Election 1 from the top left navigation panel, or click on Add.
9. Scroll down to the Other Election section.
10. Hold down Ctrl+E in Election title and enter the applicable information.
11. Click OK.
12. Hold down Ctrl+E in Election text to enter the applicable information. (See the Election Text section below for more information.)
13. Click OK.