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Get your taxes done using TurboTax
Thank you RobertB4444 for your time and advice.
The readings I've done so far also suggested that my farm is a rental property. Rental property for rental property is a like kind exchange.
Question #1: Would you elaborate a bit more about "Be careful how you enter it."?
In Turbo Tax Home & Business, the last step in creating a "Sale of Business property" asks whether one wants to
Report This Transaction
Would you like to report this transaction on one of these activities (with below radio buttons):
- No Entry
- Business (Schedule C)
- Rental or Royalty Property (Schedule E)
- Farm Rental Property (Form 4835)
I selected "Rental or Royalty property (Schedule E)" and chose to link the relinquished rental house to the 1031 exchange where both relinquished property and replacement property are rental houses, e.g.: Example - report exchangeQuestion #2: Do I need to link the relinquished (or replacement) property to the exchange transaction?
For the exchange that includes a rental farm as one of the relinquished property, the other two relinquished and all the three replacement properties are rental houses.
Question #3: I may not be able to report any property to a "SUMMARY" 8824. Correct?
Question #4: should my worksheet (I'd use excel) for each pair of the relinquished and replacement properties include entries and/or calculated values (granted some will be zero or blank) that mimics every line on 8824?
Thank you,
Lily