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Thank you Tagteam for the prompt response.
I am a bit confused by "It appears as if you need to file two Forms 8824 (along with the requisite statements)". I had three 1031 exchanges:
1. The first exchange took place in July / August time frame. It included one relinquished rental house and one replacement rental house;
2. The second exchange took place in September. It included three relinquished properties (one rental farm, two rental houses) and three replacement properties (all rental houses);
3. The third exchange took place in November last. It included one relinquished rental property and one replacement rental property (which was closed Jan this year) .
Please help me understand how many 8824 forms I need to cover all the three exchanges.
If two 8824 forms are needed, which 8824 covers which exchanges / relinquished properties?.
What is form 8435 (or did you mean Form 4835)? Was one (or more) of the properties a farm rental? -- I see Turbo Tax provides an option to link an exchange to Form 4835 (for rental farm) as the last step when I tried to create a 8824 (sale of business) in the Home & Business version (below example screen shots FYI):
Btw, I noticed "linking an exchange" to schedule D and E makes difference to my tax in a situation where taxable cash was taken out of an exchange. I didn't learn much yet when the first 1031 exchange (July/August last year) happened. The property tax on the relinquished property, part of the closing cost, was deducted from the "Amount due to Seller", i.e., the "sales proceeds". Even though the sales proceeds from the relinquished property sale never came to me, the settlement company directly wired that to the QI (IPX1031), unfortunately the "property tax", ineligible like-kind exchange expense, was automatically subtracted from the sales proceeds the settlement company wired to IPX1031. Therefore the property tax was the "cash taken" and is taxable as "capital gain".
Thank you in advance for your time and advice.
Lily
