Question

Turbotax and a 1031 exchange and form 8824

Forum|Forum|4 years ago
February 17, 2022
1 reply
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I did a 1031 way back in 2005. The purpose of doing the 1031, was to defer capital gains tax. The form 8824 is needed to calculate the cost basis of the received property, thus lowering the cost by the deferred gain. I read somewhere that if you do a 1031 but do not do the 8824 the fed voids the 1031 and you have to pay the tax. Does Turbotax Premiere create the form 8824 automatically. I do not remember doing it myself?

A

Anonymous_

Employee

TurboTax will generate Form 8824 automatically if you go through the steps (in the interview) for a like kind (1031) exchange.

R

rlamoreaux1Author

I found something from Randy that explains How to do a 1031 and it says

First, enter the data for the 1031 Exchange. This is done under FEDERAL TAXES... Wages & Income... Business Items... Sale of Business Property. The first question is on "Any Other Property Sales?". Check the box for like-kind exchanges. Complete the questions in this section and TurboTax will:

Generate form 8824 for your like-kind exchange
Calculate the Deferred Gain. This is presented after you answer the questions for the like-kind exchange.
Calculate your New Property Basis. This is presented after it presents the Deferred Gain. Write down the New Property Basis as you will need it later.

My concern is in the year 2005. I do not have a copy of my 2005 return, I'm trying to recreate it from "Tax History from 2008 and I can not find step 1 in Turbotax 2005 Premier