Section 1031 Exchange - How to Handle in TurboTax in the Subsequent Year
I entered into a Section 1031 exchange in 2024 where I sold an investment property and deferred the gain by purchasing a new investment property through a Section 1031 exchange. I reported the Section 1031 exchange in my 2024 tax return.
How do I handle this in TurboTax in my 2025 tax return? I understand that the passive losses should carry over to the property purchased and my tax basis in the property purchased should be reduced by the deferred gain. What I don't understand is why TurboTax still shows the property sold in 2025?
Would appreciate any advice on how to handle this in TurboTax in 2025.
Do the passive losses just have to be manually transferred from the old property to the new property and how do I get rid of the old property in TurboTax without tax consequences?
