I have a follow-up question on this topic. My Form 8824 Smart Worksheet asked for the FMV of the new property, less mortgage assumed, to come up with the "total of non-cash items received." Then it subtracts the FMV of the like-kind property given up to calculate "Cash Given" (Item M). In my case, it calculated Cash Given as $116,000.
However, this "Cash Given" amount is less than I had to pay at closing to account for closing costs. Also, it does not account for a cash deposit I already had made on the property acquired. I calculate Cash Given as $152,387 (includes cash paid at closing + cash deposit paid on signing purchase contract). How do I account for this higher amount -- either on Form 8824 for last year (amend my 2023 return?) or on my basis in the new property on my 2024 return? Should I have added my closing costs into the FMV of the new property?
Thanks,
Barry
