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Sold a farm and bought a Farm, should i use 1031 Exchange

Hi, Last July we sold our Small Ranch in Texas. We Signed papers for a new ranch in Oklahoma a few days after we agreed to sell the texas property. Both places were or are our home as well.

 

It was suggested to do the 1031 exchange to avoid the capital gains taxes, if there are any.

 

We sold the land, barns, corrals home, and some other cattle equipment in texas, sold for $625, 000, we purchased for $375,000 with $3677 closing cost, Built a new Barn, sheds, added watering systems, remodeled the house, 2 times in 11 years, rebuilt all the fences and corrals, Improved all the roads with hauled in material, had losses for wind and hail damage, etc  About  $249,786 worth, Looked like we had $628,150 or so in it. Cost us $34,838 to sell it. Cach from sale went to a 1031 Intermediate, who transferred the money to the new Sale when we went thru closing there ($537,160)

 

We purchased new plase for $675, 000   Home, barns, Fences, pretty much the same as old place. Paid about $5832 in Closing cost on that.

 

Question is how do I record this in Turbo Tax to avoid any capital gain costs?

I entered it as Farm sold , I do not readily see an enter to use for 1031 exchange where I avoid any capital gains. When I do the 4797 a business property sold I decrease my Tax refund by nearly $3000, wanted to be sure I'm not missing something, oddly it shows there as a Loss of  -$32000 or so. 

Am I doing it correctly or is there something I missed

 

 

1 Best answer

Accepted Solutions
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Expert Alumni

Sold a farm and bought a Farm, should i use 1031 Exchange

To enter a 1031 Like Kind Exchange in TurboTax, while logged in to your return,

  • Type "Like Kind" in the Search Box
  • Click on "Jump to like kind"
  • On the screen with "Any Other Property Sales?" check "Any additional like-kind exchanges (section 1031)..."
  • Click on Continue
  • Continue through the interview to report your 1031 like-kind exchange

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Highlighted
Expert Alumni

Sold a farm and bought a Farm, should i use 1031 Exchange

To enter a 1031 Like Kind Exchange in TurboTax, while logged in to your return,

  • Type "Like Kind" in the Search Box
  • Click on "Jump to like kind"
  • On the screen with "Any Other Property Sales?" check "Any additional like-kind exchanges (section 1031)..."
  • Click on Continue
  • Continue through the interview to report your 1031 like-kind exchange

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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