I sold a rental property and bought another one in the same day. The transaction proceed is through the closing party. It is a 1031 exchange. I also get 1099s for the selling property. How can I put 1099s info. to 8824 form. Or I need to do another form such as form 4797 and schedule D to report 1099s.
@Ihatedoingtax wrote:
It is a 1031 exchange.
No, it is not a 1031 exchange if you took control (constructive or actual) of the proceeds from the sale rather than having used an intermediary or simply swapped deeds with another party.
You might want to read the article at the link below for the basics.
https://www.journalofaccountancy.com/issues/2022/jan/like-kind-exchanges-real-property.html
I didn't took control the proceed from selling house. Instead, I bought the property right after selling with the same closing company. The money were never transfer into my account. The closing company transfer the whole proceed to the new property buying. It is not 1031 exchange?
@Ihatedoingtax wrote:
It is not 1031 exchange?
Yes, assuming it was done properly (i.e., you fit within the time constraints and were never in control of the sales proceeds).
You will enter the transaction on Form 8824. If you enter the words "like kind" in the search box and then click the "Jump to...." link, that should get you started.
Yes , I did what you said. But where and how to report1099s for the selling?
@Ihatedoingtax wrote:
.........where and how to report1099s for the selling?
You do not report it, as such. Since you did a 1031 exchange, that will be entirely reported on Form 8824 unless you received "boot" (in which case you might want to consult with a local tax professional).
First of all, you need to report the sale of your rental property.
Rentals, Royalties, and Farm>Rental Properties and Royalties (Sch E
Other Business Situations>sale of Business Property
Any Other Property Sales>select Any additional like-kind exchanges (section 1031)
Then it asks if you have like kind exchanges, say yes and then the section ask for information on the rental house you gave up and the rental house you exchanged it for.
Once complete, you have your form 8824 in your return.
Please note. Form 8824 is not available until 03/31. You won't be able to file until the form is released.
Besides form 4797 and form 8824 , do I need to do the schedule D for this like kind exchange? The selling price in the agreement is same as the purchase price in the agreement for a new property .
I followed your instruction in your previous message. The form 4797 and schedule D were generated, but the selling amount is not shown on 1a and part 1 of form 4797, instead, the selling amount is shown on Part III of form 4797, which is gain from sale or disposition of property under section 1245, 1252 ,1250, 1254 and 1255.
But the exchange should be under section1231.
@DaveF1006 wrote:
- As you go through the Business profile, there will be questions asked if you sold or disposed of the property, here you will say yes
Sorry, @DaveF1006, but that is absolutely the wrong way to handle this scenario.
The TurboTax On Demand Tax Guidance even specifically tells users not to check that box.
TurboTax Help Article for a Section 1031 Exchange.
@Ihatedoingtax wrote:
I followed your instruction in your previous message.
Unfollow the instructions because they are wrong.
@Ihatedoingtax wrote:
The form 4797 and schedule D were generated.....
If the "selling price" of your relinquished property was the same as the "purchase price" of your replacement property, you should have neither a Form 4797 nor a Schedule D.
If the fair market value of the replacement property and relinquished property are the same, then you should only be working with Form 8824.
You do, however, have to deal with Schedule E, but that should be left for another series of posts.
Hi DaveF1006,
I tried every step you guided me for 8824 form. I realized I can't mark "property sold" in the property profile, it will show actual sale's gain.
I got another problem. The schedule D in Pennsylvania part shows double transactions for this exchange. It can not be edited. I called several agent in turbo tax. None of them know it.
Is it possible you can have a look my turbo tax screen?
@Ihatedoingtax wrote:Is it possible you can have a look my turbo tax screen?
No one here can look at your TurboTax screen.
Since you are experiencing serious issues with entering this transaction, you might want to consider upgrading to TurboTax Live or Full Service.
Hi,
I have talked to turbo tax live. They checked the step I did for federal and it is right.
But no one know why the schedule D in PA has two same transaction.
@Ihatedoingtax wrote:But no one know why the schedule D in PA has two same transaction.
I sincerely doubt you are using TurboTax Live and spoke with one of their experts. Rather, you most likely simply spoke with regular Support.
TurboTax Live provides expert advice as you do your return and has a final review to ensure it is correct.
TurboTax Full Service actually involves having a tax expert prepare your tax return.
Hi,
I worked out PA schedule D myself. You just need to crossed out two line which has numbers transferred from federal . After that, you manually type the info.
Thanks for your recommendation. I consulted at least 5 turbo tax experts through phone or from online live talk. Nobody knows it.