Question

like kind exchange

Forum|Forum|4 years ago
April 9, 2022
1 reply
0 views

HI

I turned my primary residence into a rental in 2018, and then sold it in 2021. The house was purchased in 1970. I did a 1031 into a new investment property, and own a 7% interest in the LP. How do i figure out the adjusted cost basis? Is it based on the original purchase price of the house? or the adjusted basis in 2018 that was used to determine depreciation of the asset from 2018-2021?

Thank you for your help.

Dale

LeonardS

The basis of the property you acquire in a like-kind exchange is generally the same as the basis of the property you transferred. From your post the adjusted basis would be the basis of the property when you sold the property in 2021.

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