1031 exchange

Forum|Forum|2 years ago
February 14, 2024
1 reply
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I have sold a rental property with a 1031 exchange. I sold is the property for $90200. & show $34756. "Profit" after taking out the depreciation & basis to the original property. Since it is an exchange & the profit is to be deferred why is it being taxed as income to me?

Not A Product Question

KrisD15

TurboTax does not handle 1031 exchange well, but it can be done.

Please indicate to the program that you converted the property to personal use to defer the gain, however you will then need to keep records and adjust when the gain is eventually recognized.

When you do sell and need to claim the Capital Gains, you can adjust the basis of the property (lower it for the deferred gain and increase prior depreciation) in TurboTax so the gain and depreciation recapture is calculated properly.

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