A portion of my property was taken via eminent domain/ condemnation. I want to do a 1033 exchange. How do I report this?

[ToddL99]

You will need a desktop (CD/Download) version of TurboTax to make the election to defer gain on a casualty loss.  See Where can I find form 1033, a form to defer capital gains tax on a gain received due to the casualty... for additional discussion and explanation of this issue.

Enter "defer casualty gain" in the Search Topics box of TurboTax Home & Business, and select to navigate to the interview. When you complete the interview, an IRC Section 1033 (a)(2)(A) election form will be generated

The attached screenshots provide a sample of the interview screens and the form that you will see:

[hobag]

Thanks for the response Todd. I have already completed my taxes short of the eminent domain stuff online. I've read that you can simply attach a statement related to the deferral with your taxes instead of doing the form. Is this accurate?

[hobag]

And, just to be clear, I have NOT purchased a replacement property but do plan to do so in the next 2 years.

[ToddL99]

A statement would be acceptable, but it would have to include all the information required by the form.

While we recommend you use the form generated in TurboTax, you can use the sample provided below as a template for preparing your own statement.

The interview in TurboTax allows you to provide an "Anticipated Date of Replacement Property" (see sample below).