@DianeW777
Thank you for those additional comments Diane. I think I see the light at the end of the tunnel!
Based on your input, it could be financially beneficial to adjust the numbers for my 2022 tax return as it relates to the first 1031 exchange. With that, I have these additional questions:
- Is it possible to make any 2022 adjustments in the 2023 tax filing, and it will "true itself up" for both the 2022 and 2023 years? Any changes in funds owed or due to the Fed or state related to 2022 will be included within the funds calculated as part of the 2023 year?
- OR, would I have to redo my 2022 tax filing as a separate event? Once the 2022 tax return has been updated and refiled, I'd re-pull those changes into my 2023 tax file in TurboTax. I believe you can redo/resend the 2022 tax return as part of TurboTax Premier?
- Is it acceptable to keep the 2022 numbers as is even though they 1) are not optimizing the depreciable basis, and 2) the calculation/use of the land value differs from the second 1031 exchange? As noted before, the calculation for the first 1031 exchange in 2022 did not result in a negative basis for any of the properties.
Just to reiterate, the main differences between the 2 years include:
- 2022 Year:
- Did not assign a land value from the relinquished property to the single oil and gas property.
- For the additional basis calculation, I applied the land value percentage for each of the 2 properties with the improvement and land against the TOTAL additional basis (across all 3 properties) versus applying it against ITS OWN allocated basis.
- 2023 Year:
- Will assign a land value from the relinquished property to all 3 properties, including the 2 oil and gas properties.
- For the additional basis calculation, will apply the land value percentage associated with the convenience store against ITS OWN allocated basis.
I so greatly appreciate your time!
Thanks!
Jamie
