Level 4

Solved

Like Kind 1031 Exchange/Form 8824

Forum|Forum|4 years ago
March 28, 2022
6 replies
29 views

I understand conceptually how a 1031 Like Kind Exchange works. My challenge is to know if I am doing it correctly in ProSeries. Help desk doesn't have subject matter experts to guide me through the process. I found one article on this forum but it doesn't help me be sure that I am doing it correctly. Anyone have a good step by step process? Main thing is that I want to be sure I am entering the proper basis for the new asset and carrying over the postponed gains correctly. Thank you in advance.

ProSeries Professional

This topic has been closed for replies.

Best answer by barrysafeer

Here you go - found a good example which help me finish the 8824. Although it is old, it guides through the form correctly.

http://www.1031.us/PDF/Form8824Instructions2006.pdf

J

jeffmcpa2010

Level 10

What type of asset are you dealing with?

B

barrysafeerAuthor

Level 4

It is a commercial property. I added more details below.

Just-Lisa-Now-

Intuit Community Champion

The 8824 should give you the new basis for the replacement property. Is this the article you used already?

https://proconnect.intuit.com/community/individual/help/1040-completing-a-like-kind-exchange-of-business-property-1031/00/5827

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

B

barrysafeerAuthor

Level 4

Yes - that is the article. i added more details below.

dascpa

Level 11

I've always found with 1031's I create my own worksheet for the gain deferral and basis of replacement real estate and then make sure the bottom line numbers match the IRS form. Most people do so few that they're rarely confident in the form preparation. This method helps.

M

Marcia VN

Level 3

Hi,

DAScpa, would you consider sharing your 1031 excel worksheet with me?

If yes, would you please email it to me at : [email address removed]

B

barrysafeerAuthor

Level 4

Thank you all for the comments!! So many knowledgeable people here 🙂 More details:

Sold commercial property A for $1.1 million. Basis of that property A (after depreciation) is $18,263. So gain is $1,081,717. How do I show this on the Form 8824?

Bought new commercial property B for $1.1 million. When I set-up the new asset schedule, what do I put in as the basis?

How does the gain flow through to get captured on the new asset?

If anyone has a worksheet or sample 8824 they want to share - please and thank you.

B

barrysafeerAuthorAnswer

Level 4

Here you go - found a good example which help me finish the 8824. Although it is old, it guides through the form correctly.

http://www.1031.us/PDF/Form8824Instructions2006.pdf

qbteachmt

Level 15

"found a good example which help me finish the 8824"

Notice that is from 2006? As long as you used current tax program, you might be fine. But the rules are different.

You really should use Recent materials.

Don't yell at us; we're volunteers

R

RichardS77

Level 4

I have the same issue. I'm following the the article but the system is not calculating the new basis correctly and is not deferring the gain.

My case is a rental property sold for 400,000 and exchanged it for a property worth 340.000. I din't think you had to be equal or greater than the replacement property. What am I missing?

qbteachmt

Level 15

"I din't think you had to be equal or greater than the replacement property. What am I missing?"

Yes it does. Otherwise, your taxpayer client has a partial exchange and some money to report for taxes.

There are many web resources for 1031 exchange, and you are looking to read about partial exchange and "boot." Google:

what is 1031 exchange boot

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO