FORM 8824 LIKE KIND ESCHANGES

Forum|Forum|4 years ago
October 11, 2022
3 replies
39 views

ON THE FORM 8824 DATA ENTRY I AM GETTING A CASH RECEIVED ERROR.

THE FMV OF THE PROPERTY RECEIVED IS LESS THAN THE FMV OF THE PROPERTY GIVEN UP WHICH CREATES A LOSS. THE SOFTWARE IS LOOKING FOR CASH RECEIVED (WHICH WAS $0) AND SHOWING AN ERROR. HOW CAN I OVERRIDE THIS

ProSeries Basic

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Just-Lisa-Now-

Intuit Community Champion

if the replacement property cost is less than what they sold the original property for, then they may have taxable boot, not a loss.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

TaxGuyBill

@G_Astolfi_94 wrote:

THE FMV OF THE PROPERTY RECEIVED IS LESS THAN THE FMV OF THE PROPERTY GIVEN UP WHICH CREATES A LOSS. THE SOFTWARE IS LOOKING FOR CASH RECEIVED (WHICH WAS $0)

For example, you are saying they sold a property worth $300,000, and received another property worth $250,000 and $0 cash?

If so, the first property wasn't really worth $300,000. It was worth $250,000 because that is what they were able to get from it.

N

njb

Level 2

I have the opposite problem. Received property, including cash, is more than the property given up. There was no cash given up. So there is a gain.

The worksheet keeps putting the gain amount on line M as "Cash Given". And adds it to Line 18, Adj Basis of Like Kind Property Given Up.

What am I missing? It is a related party exchange.

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