1031 exchange - few questions

Forum|Forum|3 years ago
November 25, 2022
1 reply
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I am using Turbo Tax Home and Business Desktop edition(Windows). Sold one rental property and bought two following 1031 like kind of exchange. But it seems there is no way I can enter the 2nd property. Another issue, the rental property that i sold was my primary residence in the past which qualifies for some profit to be partial exemption(during last 5 years - 6 months it was primary residence and remaining 4.5 years - rental property). So how to do this? I don't want my partial exemption to be considered as boot.

thanks in advance.

TurboTax Home & Biz Windows

Mike9241

you probably need a tax pro

read this IRS memo. it deals with an airplane with some personal use and some business use. somewhat similar to your situation.

basically, it says the relinquished property is treated as one asset. that leaves open whether any portion qualifies for the home sale exclusion. based on the memo and the fact that it was mostly used as a rental, I believe that it would qualify for 1031 but not the home sale exclusion. wait for others to reply

https://www.irs.gov/pub/irs-wd/201605017.pdf

Critter-3

The TT program will not do this automatically ... this will require you to make direct entries in the FORMS mode which will void the accuracy guarantee AND keep you from efiling. Because of this I highly recommend you seek professional assistance for this tax year so you can get this done correctly ... unless you know exactly what to do it is not a DIY situation.

ashutoshsharmaindiaAuthor

I simulated this on my own last year(where I back tracked all the dates one year back). It has to be done via forms mode. Experts are no good when it comes to tax filing. Will do it myself with the help of live help to get it done correctly