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WW147258
New Member

What forms I needed when I sold my rental property and replaced with two other properties?

 
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2 Replies

What forms I needed when I sold my rental property and replaced with two other properties?

If you completed a proper 1031 exchange of one property for 2 properties then you will need to use the TT Downloaded/CD version and make overriding entries in the FORMS mode.  You must know exactly what forms you need to use and which figures to enter  and where.  The overrides will keep you from efiling and will void the accuracy guarantee.   With this in mind I highly recommend you either upgrade to one of the LIVE options where the professionals do the return for you  OR  seek local professional help for this tax year. 

Hal_Al
Level 15

What forms I needed when I sold my rental property and replaced with two other properties?

Selling one property and replacing it with another(s) does not necessarily qualify as a a tax free exchange.  A section 1031 exchange is a formal procedure to do a tax free replacement.  If that procedure was not followed, you do not qualify for a tax free exchange. 

 

References:

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

https://www.americanbar.org/groups/real_property_trust_estate/resources/real_estate_index/section-10....

https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-ti....

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