Partial 1031 exchange

Forum|Forum|3 years ago
February 24, 2023
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I bought a property in 2018 for an adjusted cost basis of $320k. I sold the building in 2022 for for $420k. I took a $93k boot. Exchange expenses of $71k. The exchange property had a FMV of $350k. On my return says my section 1031 gain was $75k. Form 4797 line 6 says my gain was $202k, for a total gain of $278. Not sure how they are getting these results. I thought I would only pay on the 1031 gain. Not sure where the $202k is coming from. Can you assist?

dw39Author

More specifically, why is form 4797 showing a gain on a property that I sold via 1031 (the boot is reported as income already)? I thought the 1031 allowed me to avoid the capital gain?

AliciaP1

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.

In TurboTax CD/Download versions, go to the black panel on the top of your screen and select Online.

Scroll down to and select Send tax file to Agent.
You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number.

Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@dw39

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