Long term capital gain

[mbclayborne]

Hi, 

I am working with one of my tax clients that has section 1031 like kind exchange property. She reliquished one property in exchange for two properties. I initially entered the date of disposition of the property, the sales price, and the basis of the property on the asset entry worksheet section under the schedule "D". The result was a long term capital gain on the disposition and sale of the property. Proseries calculated tax on this 51K gain. However, since this property was the property that was given up in the section 1031 exchange, she shouldn't have been taxed on the gain as any gains/losses are deferred. I removed the information from the asset entry worksheet which in turn automatically removed it from form 4797 sale of business property. Since she is in the 20% tax bracket, I would have expected her tax to go down by 10K and they only went down 3K. Is there a setting in the program that needs to be checked or unchecked or a form that I need to fill out? I called Proseries and they couldn't find anything on this. Any help would be greatly appreciated. 

My email address is [email address removed]

[qbteachmt]

Here is your Help article:

https://proconnect.intuit.com/community/individual/help/1040-completing-a-like-kind-exchange-of-busi...

[qbteachmt]

Oh, I see you stated "business." Help article:

https://proconnect.intuit.com/community/partnership/help/how-to-do-business-return-like-kind-exchang...