1031 exchange - few questions

[ashutoshsharmaindia]

I am using Turbo Tax Home and Business Desktop edition(Windows). Sold one rental property and bought two following 1031 like kind of exchange. But it seems there is no way I can enter the 2nd property. Another issue, the rental property that i sold was my primary residence in the past which qualifies for some profit to be partial exemption(during last 5 years - 6 months it was primary residence and remaining 4.5 years - rental property). So how to do this? I don't want my partial exemption to be considered as boot.

thanks in advance.

[Mike9241]

you probably need a tax pro 

read this IRS memo.   it deals with an airplane with some personal use and some business use. somewhat similar to your situation.

basically, it says the relinquished property is treated as one asset. that leaves open whether any portion qualifies for the home sale exclusion. based on the memo and the fact that it was mostly used as a rental, I believe that it would qualify for 1031 but not the home sale exclusion.  wait for others to reply

https://www.irs.gov/pub/irs-wd/201605017.pdf 

l

[Critter-3]

The TT program will not do this automatically ... this will require you to make direct entries in the FORMS mode which will void the accuracy guarantee AND keep you from efiling.   Because of this I highly recommend you seek professional assistance for this tax year so you can get this done correctly ... unless you know exactly what to do it is not a DIY situation.

[ashutoshsharmaindia]

I simulated this on my own last year(where I back tracked all the dates one year back). It has to be done via forms mode. Experts are no good when it comes to tax filing. Will do it myself with the help of live help to get it done correctly

[Anonymous_]

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@ashutoshsharmaindia wrote:

I simulated this on my own last year(where I back tracked all the dates one year back). It has to be done via forms mode. Experts are no good when it comes to tax filing. Will do it myself with the help of live help to get it done correctly

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Be advised that TurboTax Live is only available with the online products.

If you use a desktop product (because you need Forms Mode), then you will not be able to use Live.

[ashutoshsharmaindia]

I respectfully disagree. If you don't know it then don't claim that you know it. Since 2005 I am filing my taxes on my own. Using Desktop version only (as it is in-depth). Live help with screen sharing is available for both the versions - online as well as Desktop. Almost 90% customers use online version so that might be the reason for your ignorance.

[Anonymous_]

What you are referring to is not TurboTax Live; you are referring to help screens.

See https://turbotax.intuit.com/personal-taxes/online/live

The help screens are not going to provide much useful guidance in your scenario since it is rather complex and one which TurboTax does not fully support in the Step-by-Step mode.

[Critter-3]

@ashutoshsharmaindia 

You are NOT talking about the LIVE option where you get help from a CPA or EA who can walk you thru the inputs and KNOW what the situation is.   What you are referring to is technical support who are NOT tax professionals as a rule so although they may help with technical issues they may not give you the correct tax guidance ... use them at your own risk.  

Also the overrides in the FORMS mode will void the accuracy guarantee no matter how may tech support folks you talk to.