Entering a Like-Kind Exchange (1031 exchange) from the Dispositions screen in Lacerte

This article explains how to enter a Like-Kind Exchange (LKE) on the Dispositions screen for different types of returns.

To enter a Like-Kind Exchange on the Dispositions screen:

1. Go to the Dispositions screen:
   • Screen 17 (Individual)
   • Screen 19 (Partnership)
   • Screen 15 (Corporate)
   • Screen 23 (S Corporate)
   • Screen 22 (Fiduciary)
2. Click on the Property or click Add from the left navigation panel.
3. In the grid, complete the basic information about the sale:
   • Enter the Description of Property
   • Enter the Date Acquired
   • Enter the Date Sold (exchanged)
   • Enter the Cost or Basis
   • Enter the Expense of Sale
4. Scroll down to the Form 4797 section.
5. Enter the Depreciation allowed (-1= none, triggers 4797).
6. Check the box Form 4797, Part 1 [O] if the sale or exchange involves real property used in trade or business.
7. In the box Blank=1245, 1=1250, 2=1252, 3=1254, 4=1255, enter the type of property (real, tangible and amortizable, farmland, or other; see instructions for Form 4797).
8. Scroll down to the Like-Kind Exchanges (8824) section.
9. Complete information on the Property Received
   • Enter the Description of the new property
   • Enter the Date property identified (MMDDYY)
   • Enter the Date property received (MMDDYY)
   • Enter the FMV of other property (not like-kind)
10. Complete the information for Cash and Loan Amounts
    • Enter any Cash given by taxpayer.
    • Enter any Cash received by taxpayer.
    • Don't enter a value for both Cash given and Cash received. Enter the net value as either given or received.
    • Enter any New loans on property received - assumed by taxpayer.
    • Enter any Old loans on property given up - assumed by other party.
11. Complete the Other Property Given (not like-kind), if applicable.
    • Enter the FMV of other property (not like-kind).
    • Enter the Adjusted basis of other property.

For more information

• Using the Like-Kind Exchange Wizard in Lacerte explains how to enter a 1031 like-kind exchange.
• Using the Like-Kind Exchange Wizard for a multiple-asset exchange explains how to report the exchange of one asset for multiple similar assets.