ProConnect HelpIntuit HelpIntuit

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

by Intuit Updated about 20 hours ago

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

Lacerte Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

More like this

Dynamic AdsDynamic Ads