1031 Exchange - Entering in TT for subsequent years

Forum|Forum|3 years ago
March 11, 2023
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We had a 1031 exchange in 2021 and our taxes were done by a tax professional. I'm using TT for our 2022 returns. Since I didn't use TT for 2021, I don't have an import and have entered the rental properties and their assets manually, but I'm not sure what to select on the page Tell Us More About This Rental Asset. The two relevant choices are 1) I traded in an old asset to acquire this one or 2) I purchased this asset.

Additionally, last year we filed form 8824 for the 1031 exchange, but I'm not sure if there is a federal form that I need to continue to file for each subsequent year until we recognize the gain.

DianeW777

No, there is no federal form that continues to be filed in the years after a Section 1031 like-kind exchange. You should select that you purchased this asset.

Continue to keep all of your records until you dispose of the final property without any trades.

Depreciation continues on with the original acquired date for the old property given up (in tax law it's the same basis and recovery period as the original asset). Then new asset depreciation for any cash added to the transaction and of course for any new assets such as appliances. Your tax professional would have set all of this up for you and you can simply enter the assets from your prior return.

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