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BB2000
Returning Member

How to report a bug? Issue with 1031 exchange (Form 8824)

I am having an issue filling out the 1031 form (8824). I sold farm land and purchased another farm. When I fill out the form, everything is calculated correctly but when I get to line 25, it only gives me the choice to put a basis for section 1250, 1245, or intangible property. It is my understanding that bare land is none of those choices, it should be section 1231 property. It is forcing me to put a value into one of the other choices for me to continue. Is there a work around for this? I tried calling the help desk but they didn't have one. I wasn't able to manually over-ride it either. I think it is a bug to require one of those choices to be filled out. It says in the description, IF it is 1250, 1245, or intangible property enter the values. Well, it is none of those choices so I shouldn't be required to put in a value.

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2 Replies
AmyC
Expert Alumni

How to report a bug? Issue with 1031 exchange (Form 8824)

You are correct that 1231 is not an option but a value is required thanks to the IRS.  If you are using the desktop program, you can do an override for the value. The form has changed and the new instructions state:

 

Lines 25a, 25b, and 25c.

If you received section 1250 property, section 1245 property, and/or intangible property that is like-kind property in the exchange, you must complete line 25a, 25b, and/or 25c, whichever are applicable.

On line 25a, enter the amount from line 25 that is allocated to the like-kind section 1250 property received in the exchange.

On line 25b, enter the amount from line 25 that is allocated to the like-kind section 1245 property received in the exchange.

On line 25c, enter the amount from line 25 that is allocated to the like-kind intangible property received in the exchange.

 

Amounts entered on lines 25a, 25b, and 25c must be proportionate to their FMVs.

This is an Image: caution.gifE-filers don't have line 12a, 15a, or 25a through 25c on their Form 8824. E-filers must attach a separate sheet to their Form 8824 on which they will report information for those lines. They should write at the top of the sheet, their name and identifying number as they appear on the Form 8824.

 

See Instructions for Form 8824  and Form 8824

 

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BB2000
Returning Member

How to report a bug? Issue with 1031 exchange (Form 8824)

Amy,

 

How do you do the over-ride? I get the same red highlight in line 25a as your screen shot. For me, I try to right click and say over-ride but it does not allow me to select the over-ride button, so the box stays red. Since turbotax considers it to be an error, it won't let me submit my taxes until it is fixed.

 

Also, it says in the notes you provided: "E-filers don't have line 12a, 15a, or 25a through 25c on their Form 8824. E-filers must attach a separate sheet to their Form 8824 on which they will report information for those lines." How do you attach a separate sheet in turbotax?

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