1031 Exchange

[terishaw1040sf]

Client completed a 1031 by exchanging a residential rental property in SF for two similar, but cheaper properties in HI in November.  According to the intermediary, approximately $15K in boot.  Do I need to complete two 8824s and prorate the basis between the two replacement properties or only one combined 8824?  Obviously I will still need to report each HI property on it's own Schedule E.  Are any of the costs of sale, e.g., commissions, added to the basis of the original property and replacement properties?  

IRS says with multiple replacement properties I must attach a statement, that also applies in this situation? Also, I inherited this client and the original CPA only put the improvement value on the E but I also need the total purchase price, including land, correct?  

Last thing, I understand that since original property was exchanged from CA to another state, CA requires annual reporting.  Are you familiar with the form the needs to be filed annually with CA.

Many, many thanks.

[IntuitAustin]

Thank you for your question! Since this is a tax advice question, we’ve moved it to our product discussions board for discussion among your peers.

Cheers!