Investors & landlords
No, if you do not own the land and only the mineral rights then no amount of the assets should be applied to land for the oil & mineral property. It was not previously clear there was no land ownership with this property.
Yes, the additional basis should be applied to all three properties because they are all tied to your original property traded in the transaction. All cost basis belongs to all three properties.
I would suggest that you enter the assets as purchased and do not enter the excess amount for these properties. In stead complete the assets as we discussed and then complete your Form 8824 for the like kind exchange.
- Under Wages and Income scroll to 'Other Business Situations' > Select Show More > Start Sale of Business Property
- Check the box next to Any additional like-kind exchanges (section 1031) > Continue
- Follow each screen to make your entries > Your Form 8824 will be completed for you based on your entries
- See the images below for assistance
