I am trying to enter a Partial Like Kind exchange in TT, but as soon as I fill in the Like Kind section, the taxes due INCREASE over what I would have to pay if I did no exchange at all! Is it possible to handle that type of exchange in TT?
For example,
I’m selling a property and purchasing a like kind property that is less expensive, and taking boot.
Relinquinshed Property | |
Sale of property | 495,000 |
Basis of sold property | 228,409 |
Depreciation to recapture | 100,910 |
Mortgage paid off | 77,411 |
| |
| |
Gained Property | |
Cost of property | 295,000 |
Boot from sale | 140,000 |
New Loan | 155,000 |
Entering these figures produces a HIGHER tax than no exchange at all!
