1031 Exchange that spans two tax years.

Forum|Forum|4 years ago
March 1, 2022
1 reply
2 views

My client just closed on a 1031 exchange yesterday but, because the exchange hadn't been completed by 12/31/21, the agent sent a 1099 - S with the retail value of the property given up, rather than a zero. Is this a problem? How should I prepare the tax return? Should I include a statement to the IRS? I've never had this si

ProSeries Professional

This topic has been closed for replies.

qbteachmt

Level 15

If they are/were still in the timeframe for the exchange, and it hasn't failed, and they did not disburse the funds, then there is nothing to report for 2021.

Don't yell at us; we're volunteers

qbteachmt

Level 15

Okay, I reread this and I think I misunderstood. I meant they should not have issued that form unless the TP has access to the funds or a portion of the funds were/will be released from the exchange which has not failed.

Not knowing any of the details, I would refer you to a resource such as:

https://assets.kpmg/content/dam/kpmg/us/pdf/2020/11/tnf-wnit-lke-nov2-2020.pdf

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO