How do I handle a mid year sale of an investment property that I then used proceeds to do a 1031 Exchange-in Turbo Tax Premier 2021???

[PaulV63]

So I had two duplexes each under a different LLC.  I rented them up till point of sale, one in June and the other in July.  Each were entered into their own 1031 Exchange with a qualified intermediary.   On the first property I bought two like-kind properties, with a small amount of money left over as "boot".  On the other property I sold and had put into a 1031 exchange, I decided to NOT buy any more properties but keep the entire amount, less the exchange fee, as BOOT...I realize I will have some hefty capital gains on that one.  But as I enter the data in Turbo Tax for 2021, how do I enter the data for both properties such as the income I received as well as all the expenses, up until I sold them...Because as I enter the data, Turbo Tax asks if you sold the property.  Does Turbo Tax handle this kind complexity?  For example if I say "yes, I sold the property" does it then say "Did you sell as a part of an 1031 Exchange" but still take into account everything associated with the property up till the sale?  Or do I just jump to the 1031 Exchange form and answer all the questions.?  Thanks

[MinhT1]

You should enter the sales in the 1031 exchange section of TurboTax. Follow the interview and carefully answer all questions.

Please read this TurboTax Help topic for more information.

[PaulV63]

Well the directions say enter "like kind" and then "jump to" ...but i cant find this after I search for it.  just gives lots of different topics that people had entered about 1031 exchanges...how do i get to the "interview-step by step" for 1031 exchange...so are you saying by just going to the 1031 exchange section it will take care of all the income/expenses for said property prior to exchange sale?  thanks

[MinhT1 · Accepted solution]

Please press Enter after entering like kind (in two words, no hyphen) in the search box and you should have the Jump to link.

In the Like kind questionnaire you enter the cost basis and the sales price (selling expenses deducted).

As for rental income and expenses for the rental period, they are entered in the rental section of TurboTax.

[PaulV63]

thanks..that worked! i think i have the info now.