I had a personal distribution on a 1031 exchange, where do I put this in Turbo Tax?

Forum|Forum|3 years ago
October 25, 2022
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OK, so am reading that I need to put a 1031 exchange into Turbo tax as a 1031 exchange.

In the sale of my property I also took a personal distribution on the sale of the property.

Do I put the personal distrubution into the Schedule E under the sale of the house, and then put the 1031 seperately as the like and kind?

Or, how would I go about this?

Mike9241

I spent 100% of the funds on a like and kind so that should be no problem.

Unfortunately I also took a personal distribution on the sale of the property.

if all the funds were used to buy the replacement property where did the funds come from for the funds you took out?

candycanepandaAuthor

Sorry @Mike9241 I edited my question to make more sense.

I used 100% of the exchange on a like and kind.

However I took a personal distribution as well.

Since I touched the money, where do I put the personal distribution funds from the sale of the property in turbo tax?

Mike9241

we can not see the closing document from the exchange trustee. so your statements are contradictory

if you used 100% of the proceeds from the sale of the old property to buy the replacement property then there should be no funds left for distribution to you. so you need to explain in detail how you got money out of the exchange.

however, it is possible you gave the exchange trustee additional money in case it was needed to purchase the replacement property. you properly completed the exchange, totally tax-free (no boot - no non-like-kind property involved, no mortgage reduction old property vs new property) and the trustee return the extra cash

another possibility is you got the cash from the sale and then turned around and used the funds to buy the replacement property. this would not qualify for 1031.