OK, so I went ahead and paid for the Expert Help Live feature on TT and, after a long time of her reading the IRS forms and searching around Turbo Tax, she advised that boot be listed under Schedule D. This is NOT accessible from the "Sale of Business Property" interview series that the 1031 sale sends you to. Instead, under "Income and Expenses" heading we went all the way down to "Investment Income" and selected the category "Stocks, Mutual Funds, Bonds, Other" because of the "Other."When it asks you to "Choose the type of investment you sold" we went all the way to the bottom for "Everything else." The next pages "Net Proceeds" is where we entered the boot amount, for me it was $5229. For how we acquired it we put "Purchase." Our cost basis for it was 0 and the date of purchase was the same as the date of the sale, all this year, in order to make it be taxed as short term capital gains rather than long term capital gains. And that's pretty much it. This reduced my federal and state tax refund the way that Boot should. I don't know enough about the tax code to know if we did this right, but she was a CPA and seemed to feel good about this solution. What I do know, and what she agreed with me on, is that there is no place to put Boot from a 1031 under "Sale of Business Property," even though you still need to go through that interview to enter your basis for the old and new property. Anyone have further thoughts before I send this to the IRS?
