Cost basis for relinquished property in 1031 exchange

Forum|Forum|4 years ago
September 3, 2022
8 replies
34 views

I am completing Form 8824 for 1031 exchange of rental properties. Relinquished property cost basis = 113,840 less accum depreciation of 22,769 = 91,071. Sold for 235,500 which I assume is FMV.

Replacement property price = 300,000.

I followed the instructions at this link: https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/completing-like-kind-exchange-1040-return/L4VXgbWL7_US_en_US?uid=l7mcir2u

Form 8824 Cash Given is coming up with 64,500. I don't understand where this is coming from.

Any help would be appreciated.

ProSeries Professional

This topic has been closed for replies.

Best answer by sjrcpa

Thank you for replying.

I always have to fill out the form by hand, then back into it in the software.

sjrcpa

Level 15

Purchase Price of new $300,000 less sale price/proceeds from old property $235,500 = $64,500 needed to complete the transaction.

The more I know the more I don’t know.

C

csanchezAuthor

Level 5

Thank you. TP actually got a loan for 110,000 plus the proceeds from the relinquished property. Do I enter that somewhere?

sjrcpa

Level 15

Presumably the delta between $64,500 and $110,000 is expenses to complete the transaction.

So maybe these need to be entered.

Or, did your client receive some cash?

The more I know the more I don’t know.

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