1031 Exchange Form Issue

Forum|Forum|2 years ago
April 9, 2024
2 replies
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I am having an issue filling out the 1031 form (8824). I sold farm land and purchased another farm. When I fill out the form, everything is calculated correctly but when I get to line 25, it only gives me the choice to put a basis for section 1250, 1245, or intangible property. It is my understanding that bare land is none of those choices, it should be section 1231 property. It is forcing me to put a value into one of those choices for me to continue. Is there a work around for this?

Mike9241

a definite bug in Turvotax sine 25a, b and c should be left blank in your situation. i don't see a workaround.

BB2000Author

So what can I do? I tried calling the help desk but they could not find a work around. Is there a way to report a bug to turbotax? The lady from the help desk said she wasn't able to, which is crazy to me.

DaveF1006

Yes. Here is how to report.

Go to Federal
Wages and Income
Business Items
Sale of Business Property
The first Screen says "Any other Property Sales"
Check only Any Additional Like-kind Sales
Answer yes if you have like-kind exchanges
Next it asks for information about the property given up
Next screen asks for more information, including the basis.
The adjusted basis should be the amount you paid for the land plus any improvements such as a graveled road
Next you will enter information about the land that you acquired.
There will be other questions about different property given up. You may ignore these questions.
In the end, you should receive a message that there is no taxable gain.

if you are preparing form 8824, stop. If you report it the manner I described above, you won't be saddled by all these other issues you are experiencing.

@BB2000

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