Help! can you provide a step by step for a residental rental sold in 12-28-18 bought same kind in 5-1-19 (1031 exchange) do I need to use 4797?

[Just-Lisa-Now- · Accepted solution]

This is for completing a 1031 exchange using ProSeries.

https://accountants-community.intuit.com/articles/1608733-1040-completing-a-like-kind-exchange-of-bu...

[corinnerichard]

thank you but the exchange happened in 2019 don't I have to do a 4797form?

[Just-Lisa-Now-]

Is following the instructions for filling out the 8824 giving you an error of some kind?      The sale took place in 2018, so you shouldn't get any error on the Asset Entry worksheet.

[corinnerichard]

thank you so much for help, I am stuck on the form 8824 line O of the summary smart worksheet, what doe they mean by the adjust basis of like kind property given up .

[Just-Lisa-Now-]

They want the adjusted basis of the property that was sold.    Are you asking what "adjusted basis" means?

[corinnerichard]

yes does that mean price of building plus expense of sale then minus all the depreciation accumulated?

or can I just give you a call how to keep doing this form.  my concern is that I do not see how just filling out this form will show the deferred exchange

[Ernie]

If the property was purchased months after the sale of the old property I don't believe it is a 1031 exchange.

[corinnerichard]

they are asking for adjusted basis  of like kind property given up from worksheet line o so does that mean price of building plus expense of sale then minus all depreciation accumulated.  and then do I need to fill out the section for depreciation?

[Just-Lisa-Now-]

I've only done a couple of these before so I wont be able to walk you through it.....those instructions seem to be pretty much step by step.   I would assume since the replacement property wasn't secured until 2019 that you would not need to fill out the new asset entry worksheet yet.

Did this exchange all go through a 3rd party escrow company to hold the money in between sale and purchase?  There are specific conditions (time frame) with respect to the replacement property for it to qualify as a 1031 exchange.  Merely selling a rental property and buying another one doesn't constitute a 1031 exchange.

[George4Tacks]

https://www.google.com/search?q=1031+worksheet offers a few 1031 worksheets. I would suggest you do maybe the free xls or the paper worksheet before attempting to the do the input for the 8824. IF you end up with a reportable gain, it will go on the 4797. Use the link Lisa gave for all the steps needed.