Deferred gain on a like kind exchange. How do you report this on sale of current asset?

Forum|Forum|6 years ago
December 7, 2019
3 replies
25 views

An asset was acquired in a like kind exchange. There was deferred gain at the time. Now with the 2018 rules, you treat the asset as a sale when again traded in. How do you enter in Proseries, the defered gain from first trade (Basis/Depr, etc)?

ProSeries Professional

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Best answer by IRonMaN

There is no deferred gain under the new rules unless it is for the sale of real estate. I you trade an asset, you in effect sold the asset and you report any gain. The old deferred gain was treated as an adjustment to basis so there isn't anything additional to be done with it.

IRonMaNAnswer

Level 15

There is no deferred gain under the new rules unless it is for the sale of real estate. I you trade an asset, you in effect sold the asset and you report any gain. The old deferred gain was treated as an adjustment to basis so there isn't anything additional to be done with it.

Slava Ukraini!

R

RJ01Author

Level 2

so, gain is ordinary upto deprecation on the asset that was traded and anything excess is then capital gain. Depreciation on the previous trade in has no bearing??

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