yes, i agree. but i have to generate form 8824 to report the exchange--, and that doesn't happen if i just say i bought a new property. Yes, you must file Form 8824. Use the instructions provided above (and below for your convenience). Also use the link to see when that form is available. Where do you enter a like-kind or Section 1031 exchange? When will federal forms be available? (Form 8824 will be ready on 2/24/2022 likely waiting on the IRS to finalize since it is still in draft form)When you are signed into your TurboTax Online Account you can follow the steps below: Under Wages and Income scroll to 'Other Business Situations' > Select Show More > Start Sale of Business Property Check the box next to Any additional like-kind exchanges (section 1031) > Continue Follow each screen to make your entries > Your Form 8824 will be completed for you based on your entries See the images below for assistance

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

bobboka

Solved

How do you enter the basis of a rental property acquired in a like-kind exchange? I know what the amount is, I just don't know how/where to enter it.

Forum|Forum|4 years ago
January 10, 2022
1 reply
0 views

No text available

TurboTax Premier Online

Best answer by DianeW777

yes, i agree. but i have to generate form 8824 to report the exchange--, and that doesn't happen if i just say i bought a new property.

Yes, you must file Form 8824. Use the instructions provided above (and below for your convenience). Also use the link to see when that form is available.

Where do you enter a like-kind or Section 1031 exchange?
When will federal forms be available? (Form 8824 will be ready on 2/24/2022 likely waiting on the IRS to finalize since it is still in draft form)

When you are signed into your TurboTax Online Account you can follow the steps below:

Under Wages and Income scroll to 'Other Business Situations' > Select Show More > Start Sale of Business Property
Check the box next to Any additional like-kind exchanges (section 1031) > Continue
Follow each screen to make your entries > Your Form 8824 will be completed for you based on your entries
See the images below for assistance

Critter-3

Just enter the asset in the asset section like it was a new purchase.

bobbokaAuthor

cant be right. i need the whole like kind exchange stuff, form 8824 and all that. it is not simply a purchase of a new property--besides the basis is not the same as the purchase price--i have to account for previous depreciation, plus the purchase price of the original asset

Critter-3

You depreciate property you received in a like kind exchange (Section 1031), as though you never gave up the original property. You use the same adjusted basis as the property given up. If you paid money in addition to the property given up then you would depreciate the additional cost over the same recovery period.

To be clear, you continue the depreciation as though there was no trade. Then with any extra cash that was paid for the replacement property (the property received in the exchange) you set up a new asset and begin depreciation in 2020 as residential rental property using 27.5 year recovery period (depreciation method).

If you buy up in your exchange (your New Property cost more than you sold your Old for), the answer is easy – you treat the additional cash part as you would a new addition to an existing property. In other words, you treat the amount of the buy-up the same as you would the cost of a capital improvement.