Get your taxes done using TurboTax
Hi lori58sf,
Thank you for your time and response. Please see my response to each of your question, and my question about Turbo Tax Home and Business Desk version at the end. I appreciate your time and help.
are your expenses are all allowable exchange expenses?
Yes. I use Turbo Tax Home and Business Desk version and have no question.
did you calculate adj'd cost base of relinquished property, factored in depreciation?
Yes. I use Turbo Tax Home and Business Desk version and have no question.
also did you factor in recapture gain?
Yes. I use Turbo Tax Home and Business Desk version and have no question.
what amount is deposited into QI who manages your 1031 exchange?
Yes. I use Turbo Tax Home and Business Desk version and have no question.
when exchange is completed, did you get a check from them?
No. I used 1031 IPX and they handled all my like-kind exchanges including accepting the "sales proceeds" from the settlement companies who closed the sale of the relinquished properties, and sending the sales proceeds (less IPX charge) to the settlement companies who closed the purchase of the replacement properties. Turbo Tax worked just fine for every 1031 exchange that involved one relinquished property and one replacement property. It calculated correctly the captured capital gain, deferred capital gain, and new cost basis for the newly acquired replacement property.
The challenges I have with the Turbo Tax (Home and Business Desk version) are as follows:
- Per IRS rules for the above scenario, I need to file a SUMMARY 8824 (filled as below) and 8824 statements for each property.
- TT (desk top, home & business) allowed me to create a SUMMARY 8824 within TT and I was able to manually enter SUMMARY on line 1. It does not allow me to enter Line 23 or Line 25 as both are "TT calculated fields". Thought I could print the SUMMARY 8824 with my name, id number and line 1, then ink-fill Line 23 and Line 25. However the SUMMARY 8824 form was auto-excluded from the saved tax return pdf file. I.e., there is no SUMMARY 8824 to print and ink-fill Line 23 or Line 25.
- In the end I went to IRS web site and filled a SUMMAY 8824 and printed it there.
- Turbo Tax (home and business, desk top) doesn't provide worksheet or anything along that line for me to enter 8824 statements for properties in the scenario where a 1031 exchange involved multiple relinquished and/or replacement properties.
- I had to use some tool (used excel) outside Turbo Tax to create the 8824 statements (with the necessary calculation).
- Turbo Tax (home and business, desk top) doesn't seem able to eFile my tax return including the SUMMARY 8824 form (from IRS web site) and 8824 statements (in excel).
- As a result of the above challenges, I printed out my return (several hundred pages) for paper filing.
I'd be obliged if someone can help me to eFile my return with the Summary 8824 and 8824 statements with Turbo Tax (Home and Business, Desk Top version).
Thank you very much in advance for your time and advices. Have a great weekend,
Lily
