Hello, I would greatly appreciate some guidance with recording my information for taxes. In 2024 I relinquished two residential rental properties and acquired one through a 1031 Like-Kind Exchange. Opinions vary widely on how this should be recorded. I'm using TT Desktop. I had NO mortgage on relinquished properties, but took out mortgage on acquired property. Currently Fm 8824 records are:
Section I.
Line 1. Both relinquished asset addresses.
Line 2. Acquired asset.
Line 3. 09/01/08 ( Earliest acquired date of the two relinquished assets)
Line 4. 5/15/24 (Date first asset was relinquished)
Line 5. 6/6/24 (Identified asset to acquire {this is also the date second asset was given over})
Line 6. 6/21/24 (New asset acquired )
In section III.
A, C, and F, $650,000 The FMV of acquired asset.
G $455,000 the combined amounts from relinquished assets
Along with a summary noting the sale prices $255,000 and $200,000 and description of the relinquished assets.
If that is correct, I now have the closing costs to account for.
I have:
Agent commissions
Title search
Title Ins.
I gave a credit to my buyer
points and origination fees on my mortgage
Taxes,
incidental fees from closing agents
Surveys
etc.
What do I do with all that? Do I take all these costs and put them in the depreciation schedule? Do I lower the sales price of relinquished assets to account for these costs.
Thank you for your help.
Respectfully!
