Dear Crater Lake - I have Turbo Tax premier - and as far as I can tell Turbo Tax does NOT have a form 1099-S. Which I think is a joke.
To me - the IRS gets certain information against my social security #, for which they will run against my return to see if I enter that amount. So for that I am not happy.
I did get a reply from some "tax expert" working for Turbo Tax who told me to just use the information from my 1099-S and enter it into the system. Again, this does not decrease my chances of being selected for audit.
Another problem I found - was that when I did the disposition of the asset - Turbo Tax automatically created a gain, as there was no way to tell the system this was a 1031 exchange on the disposition.
I had to dispose of the asset (original property) at the date of sale - so that depreciation would calculate correctly, allocated for the year. What I did, which is wrong, was to plug a number as sales costs which would force the net gain/loss of that disposition to be zero. Which was to plug a large number to avoid gain on recapture of my prior year depreciation, and gain from sale at a price higher than book value or original cost, less year to date depreciation.
Another thing - was that the sales price on the 1099-S, was allocated the assets in the home I disposed of. Again Turbo Tax did not take any partial depreciation of any asset I acquired in 2019. I put over $25,000 of upgrades in the property prior to disposition, so I wanted to allocate that sales price on the 1099-S to the home value as well as other capital improvements I did to the home prior to sale. Because my disposition of the home included assets purchased prior to 2019 and in 2019 - Turbo Tax did not "net" all my gains/losses on the disposition. Instead, if I disposed of an asset for more than net asset value - it was charging me a capital gain. Again, I had to keep plugging in a different disposition value on each asset related to the home to try to get as close to a zero net gain/loss on disposition. I found Turbo Tax to be flawed in helping tax preparers who have this situation.
For me - I didn't find Turbo Tax to have what I really needed it to have to do the disposition of the home and for me to enter the 1099-S properly. I will be looking into a different tax package for next year, if anyone has any recommendations - please tell me. The Turbo Tax expert who wrote to me just said "you have a complicated tax situation". I don't - because other people have the same tax situation, and a 1031 exchange is allowed by IRS regulations.
I'm just trying to do my taxes correctly and avoid an audit. I have nothing to hide - just not like how Turbo Tax can't properly address this situation, when I pay a higher price for the Premier Tax package. I expected some programming to be done to address this allowable tax situation.
I haven't filed my return yet - so still hopeful someone has some proper way of handling this.
