Which form to report replacement of condemned rental?

[CSeisert]

We had a rental that was condemned in 2016.  We purchased the replacement in 2019 and need to report this exchange in order to defer gain.  The condemnation process took so long, that I did not file the election in 2016, but I did remove the condemned property from my schedule E and the depreciation schedule too.  I need to know which form to use the 1033 exchange rules to tie the replacement property to the condemned one and pub 244 is greek to me.    HELP!

[CSeisert]

PUB 544, not 244.  oops

[Anonymous]

it's not so much a form as it is an election. in search box type in invol.

election to defer gain invol conversion  - should appear.  

[Carl]

I ma not at all familiar with 1031 exchanges, and especially not your specific situation of a forced conversion/exchange. But do be aware that if you will have a period of time (looks like several years to me) where the property is not "in service", then with the new property the depreciation will be severely skewed. If upon checking you find that is is "in fact" skewed and wrong, then you will not be able to use TurboTax to report this. The TurboTax program is not capable of dealing with a period of not being "in service" on a rental; especially if that period is more than one year.

[tagteam]

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@Carl wrote:

I ma not at all familiar with 1031 exchanges, and especially not your specific situation of a forced conversion/exchange.

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It is not an 1031 (like-kind) exchange - it is an involuntary conversion (Section 1033).

See https://www.irs.gov/businesses/small-businesses-self-employed/involuntary-conversions-real-estate-ta...

[Critter-3]

There are times/situations where a DIY program is not the right choice and is not up to the task.  Since the involuntary conversion is such a rare situation if you could do this at all you would need the downloaded version most likely.  Either upgrade to the LIVE version for one on one professional assistance  OR   seek local professional assistance asap. 

[CSeisert]

hmm, I just thought we would have no depreciation , between the date of condemnation of the first property, and the purchase of the replacement.  But so far, I'm still trying to figure out how to set up the replacement property, let alone depreciating it.  Thank you for your observation.  I will be on the lookout for this.  I think I'll look into turboTax live, as another super-user recommended.  I always thought the live version was for very simple taxes, and never looked there.

[CSeisert]

Thank you, the link does confirm that our gain can be postponed. Nowhere do I see what tax form to use.  Pub 544 refers to Form 4797 & Form 8949, and 12 more.  It's mind boggling.

[CSeisert]

Thank you, I was beginning to suspect this.  Just thought if I could get advice on which form to use, (based on the situation I described) someone would have done one of these.  I'm beginning to realize how rare it is.  I did reach out to some intermediary exchange companies, although they mostly do 1031 exchanges, but maybe. You have given me another option, because I have never looked into the LIVE version.  Thanks!