1031 Exchange

Mcb050032 — Wed, 11 Feb 2026 09:57:32 GMT

Replacement Property FMV $500k

Sale price of Relinquished Property $490k, Adjusted Basis (Net Deprec) $128,323

Exchange expenses from closing statement total $37,323.50 (includes prorated property tax $2,171).

Net Proceeds disbursement $452,676.33

Summarize paid $5,550 for an exchange fee and boot of $47,323.67

Do I need to take the property tax out as an exchange expense? So exchange expenses become $35,152.33, which reduces the boot to 45,152.67?

Is my basis in the new property: Carry over $128,323 + $45,152.67 + $5,550 exchange fee ? $179,025.67

On 8824 would I report FMV received $500k (Ln 16), Adj Basis (Ln 18) $179,025.67, then deferred gain $320,975?

Re: 1031 Exchange

M-MTax — Fri, 14 Jun 2024 15:27:28 GMT

You can deduct the taxes as itemized deductions. See this thread