topic Like Kind Exchange in Investors & landlords

Like Kind Exchange

csanford2 — Tue, 24 Mar 2020 17:09:13 GMT

I purchased a piece of land in 2000 as part of a like kind exchange. I have now sold this property but elected not to roll the proceeds into another property. How do I record this transaction in Turbo Tax? Do I use the like kind exchange section or use the capital gain section? Is there anything I need to be aware of in Turbo Tax to make sure I record the transaction correctly?

Thank you!

Re: Like Kind Exchange

Anonymous — Tue, 24 Mar 2020 17:28:20 GMT

since you did not do an exchange, this is noting more than a sale of a capital asset reported on form 1099-b (worksheet).

the only tricky part are your costs which would include cost of original land.

selling expenses would include selling expenses of the original land + exchange expenses and selling expenses in the current land.

Re: Like Kind Exchange

csanford2 — Wed, 25 Mar 2020 18:53:14 GMT

Thank you for your response! I have a follow-up question - I had a deferred gain from the transaction in 2004 reported on Form 8824. Where do I report the deferred gain on the sale of the property in 2019 ?

Thank you!

Re: Like Kind Exchange

JohnB5677 — Wed, 25 Mar 2020 19:57:05 GMT

The deferred gain is included in the cost basis calculation of the first 1031 exchange. In simple terms the cost basis in your new property is the cost of the new property minus any gain you deferred in the exchange. Therefore, there is no need to post it anywhere.