I am having a little problem calculating the basis of my new exchange property. I have filled out the 8824 and it is calculating correctly.
I exchanged a rental property with a mortgage for a rental property without a mortgage. The 8824, new basis of like kind property received (line 25) is $70k, and the deferred gain (line24) is $358,311. We paid $110k in cash at the close of the new property. Mortgage on the original exchange property $90k was paid off. Boot on the sales price difference was $6k. Original basis was $56k, including land. Expenses of the sale ($21k).
Do I enter the new property in the asset section as follows?
1. enter an asset with the original basis of $56k (includes land) with original start date of old asset.
2. enter another asset with the expenses of the sale $15k ($21k less boot of $6k) starting the new asset start date.
3. we put $110k into purchasing the new asset. Is that added to the new asset?
Thanks,
C
