1031 exchange

[bob808]

I am doing a 1031 exchange with rental property and I followed a previous response to this question, seen below. All works out except I am getting an error message requesting the sales price. See step 1 part 4. Thank you.                                

Completing a Like Kind Exchange in business returns

SOLVED•by Intuit•ProSeries Professional•27•Updated 5 days ago

Before you start:

• IRS Regulations changed effective January 1st, 2018. A like-kind exchange, or 1031 exchange, can only be completed for real property. See here for more details.
• A like-kind exchange consists of three main steps. All three steps must be completed for the tax return to contain the correct information.

Step 1: Disposing of the original asset

1. Open the Asset Entry Worksheet for the asset being traded.
2. Scroll down to the Dispositions section.
3. In the Date of disposition field, enter the date the property was given up.
   • If multiple assets were included in the trade simply enter the same Date of Disposition on each asset given up.
4. Do not complete any other information in the Dispositions section. Entering other information, such as sales price, will generate the Form 4797.

Step 2: Completing the 8824

1. Open the 8824.
2. In Part I complete lines 1-7 with the applicable trade information.
3. If the exchange was with a related party complete Part II.
4. Complete the Summary Smart Worksheet:
   • Lines A-F will pertain to the property received.
   • Lines G-K will pertain to the property given up.
   • If no additional property was given up leave like J blank.
5. Complete the Like-Kind Adjusted Basis Smart Worksheet
6. Enter any other information about this exchange.
7. ProSeries will now flow these entries to the 8824 to complete the required calculations. There are some important lines to review:
   1. Line 23 is the amount of gain, if any, that will be taxable on the tax return.
   2. Line 25 is the Basis of like-kind property received. You'll need this for Step 3.

[Terry53029 · Accepted solution]

I believe your instructions are correct, and I haven't done one in a while, but you should not receive an error if all data entered is correct. You didn't put zero in sale price as it should be blank. if left sale price blank just go over all entries.

[bob808]

My problem was I was also linking it to a home sales worksheet and running the 1031 exchange through that. Once I removed that form it worked. Thank you.

[hkchiwai]

Trying to a 1031 exchange for the first time, could you repost your entire instruction again or direct me to where I could locate the complete solution.

Mahalo!