topic Sold primary home partial used room as airbnb and now filing with 1031 exchange in Get your taxes done using TurboTax

Sold primary home partial used room as airbnb and now filing with 1031 exchange

expressfree1234 — Mon, 09 Mar 2026 09:02:49 GMT

Hi,

I lived in my primary home since 2002, but during 2016 until 2020 I did rented our's 1 room about 12.5% of the house as filing in income tax each year since 2016. So it is considering a partial rental. Last year 2021, we sold the home and doing a 1031 exchange of the 12.5% sale money during the final proceed of the sale.

How do I file income tax for this 12.5% of money for 1031 exchange in turbo tax of my primary home sale?

Please help.

Re: Sold primary home partial used room as airbnb and now filing with 1031 exchange

AmyC — Thu, 10 Mar 2022 04:18:48 GMT

The Form 8824 is used to report the like kind exchange. Form 8824 states:

When To File

If during the current tax year you transferred property to another party in a like-kind exchange, you must file Form 8824 with your tax return for that year. Also file Form 8824 for the 2 years following the year of a related party exchange. See the instructions for Line 7, later, for details.

There are two ways to handle a 1031 and TurboTax can only use one method. Click the link for more detailed info on 1031 Exchanges.

Cost basis of the new property = cost of new property - deferred gain from original property.

Re: Sold primary home partial used room as airbnb and now filing with 1031 exchange

DanP0428 — Thu, 10 Mar 2022 04:55:04 GMT

TurboTax cannot handle a like-kind exchange for one room. You need to see a local tax preparer this year.