I want to sell rental property I acquired thru 1031 exchange, how do i figure the tax due on sale of the property?

Forum|Forum|7 years ago
June 1, 2019
16 replies
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Best answer by TaxGuyBill

What amount have you been depreciating? If you have been depreciating the correct amount, that should be the starting basis, and you add any improvements to that.

If you are not sure, I agree with pk, a tax professional may be a good idea, and be sure to bring your tax return from the year of the 1031 exchange (specifically, Form 8824).

TaxGuyBillAnswer

Level 13

pk_

Level 15

It is complicated, especially if you had boot at the original time of performing the exchange. Assuming that you used TurboTax ( preferably the CD version i.e. everything is on your computer) and that you have continued throught the years to diligently use TurboTax for filing your returns including the rental income --- all you have to do is tell Turbo, the rental property has been disposed off -- it will ask questions and figure out the taxes for you.

If you did not use Tubro through all these years and/or did not enter the exchange details into Turbo at that time, I would suggest go seek professional help and take with you the original QI ( Qualified Intermediary) report of the exchange and the following years of returns -- to make sure that everything tracks.

I have done it i.e. 1031 property disposed off , but I had everything all lined up over the years , but I still had to go over with a spread sheet to make sure I am not missing anything.

Good Luck