Hi MSS6245,
After you gain access into the data entry section for Form 8824, there were essentially 4 quantities TT required to be entered (not referring to the dates when you turnover relinquished property(ies) or start service of replacement property(ies) in the following order:
The page - Like-Kind Property Given Up
1) Adjusted Basis of Like-Kind Property you gave up (relinquished)
2) Fair Market Value of the property you gave up (total sold price)
Note - we assumed there were no mortgage to be paid off
Next page - Like-Kind Property Received
1) Fair Market Value of Like-Kind property you received (total purchase price including upgrades, landscaping, etc)
Note - we assumed there were no new mortgage to be assumed
Next page - Related Party Exchange - NO
Next page - Different Property Given Up - NO
Next page - Different Property Received - just hit continue, or make sure enter $0.0 in the cash received box, then hit continue (assume no boot)
Next page - Exchange Expenses - enter here
a) All closing costs for selling relinquished property
b) Exchange Qualify Intermediary costs
Note - we did not enter here the closing cost for the Replacement properties as these occurred after the 1031 exchange timeline, when the QI transferred the exchange monies with the deferred GAIN to the Title Escrow Agency for the replacement property, the 1031 Exchange is technically completed.
Next page - Your Like-Kind Exchange Result: NO TAXABLE GAIN
Next page - Your Like-Kind Exchange Results: Deferred Gain
The number displayed is the amount of deferred gain transferred to Replacement Property for calculating the NEW COST BASIS. This amount should match your calculation of [FMV RELINQUISHED] minus [Adjusted Basis of Relinquished]
Next page - Your Like-Kind Exchange Results: New Property Basis
The number displayed is the amount of the depreciable basis for the replacement property. See earlier colleagues discussing the OPT OUT or OPT IN for the MACRS for Asset Worksheet of the Replacement Property for single depreciation of the new cost basis over 27.5 yrs or accelerated depreciation for the portion of the new cost basis that came from remaining depreciation of the relinquished property.
Next page - Report This Transaction - we chose No entry as there was NO RECOGNIZED GAIN
Then ALL DONE. We were using TT Home and Business
Hope the above helped.
DISCLAIMER - we are NEITHER TurboTax professionals NOR Tax Experts, NEITHER CPA NOR Tax Accountants. The reader is advised to consult their CPA and Tax Accountants on how to complete any IRS forms correctly.
We did not want to lose the repository function of TT for the last 22 years by turning the 2021 tax return to a CPA/Tax Accountant; so we struggled with it like all the colleagues sharing on this forum. Again, thank you all for your insights.
With kind regards,
WCT888
