Question

What should i do I did a 1031 exchange in 2018

Forum|Forum|4 years ago
April 6, 2022
1 reply
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Hello

So I sold a property back in June 2018 as a 1031 and bought multiple properties with the exchange

I sold one back in April 2021 at a loss, did a lot of improvements on the property. I tried to continue the sale as a 1031 exchange but it failed so i have the funds from the intermediary Now my question is how would I file that for my tax return.... As form 4797 or 8824 or other form.... I left a couple of details these are just examples of what it would look like.......

Contract sales price $260,000.00

After all the fees $262,520.00

Depreciation Amount $44,013

Sold for $302,000.00

Settlement Charges $17000.00

Improvements $28,000.00

Asssements paid on the unit (HOA & Repairs): 52,000

Now how would this be done as I lost a lot of money in just repairs.

Please let me know if theres a way to solve this issue

Thank You

R

RobertB4444

You also need the cost basis to be transferred from the original property that you gave up in the 2018 exchange. The sale goes in as a regular sale of investment property on the 4797. You will be able to enter the improvements that you made as the cost of the sale.

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K

Kat235HowAuthor

The basis of property given up was 525000. Is the property that I gave up in the exchange . How would that affect my gains from the 1031

R

RobertB4444

It would reduce them by the basis. When the interview asks you the cost of the property enter that. Then you'll enter the accumulated depreciation and the cost of improvements.

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