To get to the like-kind exchange section in TurboTax:
- Open
(continue) your return.
- In the search box, search
for like kind (2 words, no dash) and then click the "Jump
to" link in the search results.
- On the Any Other
Property Sales screen,
check the Any additional like-kind exchanges box and click Continue.
- Answer Yes on the Like-Kind
Exchanges screen
and follow the onscreen instructions.
The first limit is
that you have 45 days from the date you sell the relinquished property to
identify potential replacement properties.
The identification must be in writing, signed by you and delivered to a
person involved in the exchange like the seller of the replacement property or
the qualified intermediary. However,
notice to your attorney, real estate agent, accountant or similar persons
acting as your agent is not sufficient.
Replacement
properties must be clearly described in the written identification. In the case of real estate, this means a
legal description, street address or distinguishable name. Follow the IRS
guidelines for the maximum number and value of properties that can be
identified.
The second limit is
that the replacement property must be received and the exchange completed no
later than 180 days after the sale of the exchanged property or the due date
(with extensions) of the income tax return for the tax year in which the
relinquished property was sold, whichever is earlier. The replacement property
received must be substantially the same as property identified within the
45-day limit described above.
