How to enter sec 1245 property in asset worksheet?

Forum|Forum|4 years ago
March 25, 2022
1 reply
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The Asset Entry Worksheet has letters in the dropdown for the various asset classes. Which one do I choose to enter Sec 1245 property? I have a Delaware Statutory Trust investment and the assets are broken up into four classes: Land [no deprec]; Buildings [Type I, 27.5 yrs. MACRS]; Land Improvements [Type H, 15-yr MACRS]; and the fourth group is "Sec. 1245 property items (generally attached to the building) that qualify as real property for 1031 exchange purposes but have a 5 year life for depreciation purposes."

So I must enter the latter three assets (excluding the land) in three different Asset Entry sheets, right? The first two are not a problem, but I need help determining which TTax letter (A, B, C, D, E1, E2, J1 thru J6, etc.) I should specify for the Sec. 1245 property. Making a bad guess will screw up the calcs for this asset and cause aggravation when I sell.

Thanks!

Best answer by Anonymous_

Exchanges of personal property (Section 1245 property is tangible or intangible personal property) no longer qualify for like kind (1031) treatment after tax reform (the TCJA).

Anonymous_Answer

Level 15

Exchanges of personal property (Section 1245 property is tangible or intangible personal property) no longer qualify for like kind (1031) treatment after tax reform (the TCJA).