1031 rental property exchange

Forum|Forum|2 years ago
May 10, 2023
1 reply
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I had exchanged 2 to 1 exchange in 2021. Filed 2 rentals given up and 1 rental gain using TT. I filed an extension and working on the 2022 return and found that the one of the property I gave up and reported as 1031 last year is still showing on my schedule E as an active rental. Please advise how to correct.

pk12_2

Employee

@yofu , are you saying that your 2021 filed / accepted return, prepared using TurboTax, did not transfer the full extent of the 1031 exchange ( 2 disposed/given up and 1 new replacement ) ? Or are you saying that the 2021 return is still in extension ( should not be generally )? I am confused.

Are you using windows downloaded / CD and if so which version -- Home& Business or ?

I will circle back once I hear from you

yofuAuthor

I filed 2021 return/was accepted, prepared using TurboTax, did not transfer the full extent of the 1031 exchange ( 2 disposed/given up and 1 new replacement ) . It transferred 1 given up and 1 new replacement, but not the other given up. It is still in Schedule E in the 2022 return I'm working on currently.

I'm using Windows platform, TT premier 2022 as well as 2021.

Critter-3

The TT program will not complete the 2 for 1 1031 exchange automatically ... you had to complete the exchange using the FORMS mode in the downloaded 2021 program. You would have had a partial year of both rentals until the exchange happened and then the one rental after the exchange. As for the transfer to the 2022 program ... some information will need to be adjusted again since the TT program will not do so automatically. There are just some limitations to a DIY program and this is one of them. I highly recommend you seek professional assistance if you don't understand what needs to be done in the FORMS mode of the downloaded program.