Hello, In 2017, we should a home and purchased a new one all within the same year. However I did not file a 1031 exchange form. What should I do to correct my returns?

Forum|Forum|5 years ago
December 16, 2020
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Best answer by Anonymous_

You would have to amend and file Form 8824, but your transaction almost certainly does not qualify.

First, the exchange is required to be either business or investment property; property held strictly for personal use (such as a main or second home) does not qualify.

Further, time constraints apply with respect to identifying the property and closing the transaction. In that regard, you can neither be in receipt of title to the replacement (new) property or funds from the sale of your property; you generally need to use an intermediary.

See https://www.irs.gov/instructions/i8824#idm139831911464752

rjs

Level 15

If you are talking about your personal home, you should not do anything. There is nothing to correct. You cannot do a Section 1031 exchange of your personal home, not even in 2017. Section 1031 applies only to business property or investment property.

Anonymous_Answer

Level 15

You would have to amend and file Form 8824, but your transaction almost certainly does not qualify.

First, the exchange is required to be either business or investment property; property held strictly for personal use (such as a main or second home) does not qualify.

See https://www.irs.gov/instructions/i8824#idm139831911464752