I sold one property with a 1031 exhange and bought 2 properties. Where do I put the second property?

Forum|Forum|3 years ago
October 28, 2022
2 replies
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I sold one property.

I used the proceeds to buy two properties.

Do I use two different 8824 forms for the 1031?

If I do, then how do I split the sale of the original aquired and sold property between the two forms?

Not A Product Question

Best answer by candycanepanda

For anyone coming here to learn and not get drama from half-witted people pretending to help (thank you to everyone on this forum that is actually helpful though!), here is the answer

Each sale property needs its own 1031 form in turbo tax.

You can then put multiple purchased properties into the same form.

You then apportion all the numbers appopriately based on the purchase price of both freshly inherited 1031 properties.

M-MTax

Apportion the basis for your properties and only 1 8824 is needed. Maybe get a tax pro.

Critter-3

The TT program doesn't handle this issue well ... you will need to know what you are doing and make some entries in the FORMS mode. So I highly recommend you seek local professional assistance with a situation like this. Tax professionals can efile 2021 returns until 11/26 when the IRS shuts down the efile system for the change to the 2022 tax filings.

candycanepandaAuthor

I am here to learn not to hire a tax person.

candycanepandaAuthorAnswer

For anyone coming here to learn and not get drama from half-witted people pretending to help (thank you to everyone on this forum that is actually helpful though!), here is the answer

Each sale property needs its own 1031 form in turbo tax.

You can then put multiple purchased properties into the same form.

You then apportion all the numbers appopriately based on the purchase price of both freshly inherited 1031 properties.

kashblack1953

So I know the depreciated basis of the property given up and what additional cash we had to put in to consummate the purchase of the replacement properties. These two amounts form the basis for the (multiple) replacement properties. I have allocated this basis proportionately to the replacement properties based on their purchase price and have elected to restart the 27.5 year depreciation clock using this basis. I have set up each of the replacement properties in TurboTax, but haven't gotten to the 20 questions related to purchase price and costs. How do I go in and force the basis the match that of what I am carrying in my spread sheet? It is also interesting that while TurboTax has been calculating the depreciation of the property we disposed of for years and thus knows it's depreciated basis, it's unable to find this information when it comes to handling the 1031 exchange.