Question

Sold primary home partial used room as airbnb and now filing with 1031 exchange

Forum|Forum|4 years ago
March 5, 2022
2 replies
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Hi,

I lived in my primary home since 2002, but during 2016 until 2020 I did rented our's 1 room about 12.5% of the house as filing in income tax each year since 2016. So it is considering a partial rental. Last year 2021, we sold the home and doing a 1031 exchange of the 12.5% sale money during the final proceed of the sale.

How do I file income tax for this 12.5% of money for 1031 exchange in turbo tax of my primary home sale?

Please help.

AmyC

Employee

The Form 8824 is used to report the like kind exchange. Form 8824 states:

When To File

If during the current tax year you transferred property to another party in a like-kind exchange, you must file Form 8824 with your tax return for that year. Also file Form 8824 for the 2 years following the year of a related party exchange. See the instructions for Line 7, later, for details.

There are two ways to handle a 1031 and TurboTax can only use one method. Click the link for more detailed info on 1031 Exchanges.

Cost basis of the new property = cost of new property - deferred gain from original property.

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T

taxlady28

TurboTax cannot handle a like-kind exchange for one room. You need to see a local tax preparer this year.