Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

 
12 Replies
Anita01
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

When you are in the interview that shows the asset you sold, one of the first questions will ask if you sold the property in 2017.  Say yes there and enter your sale info.  

On a later screen showing your asset summary, you edit the assets and enter additional sale information.  You will come to a screen asking if any of the situations listed applied to you.  One will be that you traded the property for new property.  Say Yes there.  Then go the interview for the 8824 like-kind exchange form and complete that form.  Your boot will be entered there.

joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Thanks for the response.  I've done all that but don't see on the 8824 where the boot can be entered.   I've been looking for the last couple hours.   What is the language within TT?
Anita01
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

It asks what other property or consideration you received other than the new assets,.  Cash would be entered there.
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Different Property Received
FMV of other property received (not cash)
Promissory (or Installment) Note Received    enter $5229 here????

Is this the right page?  If I enter the cash amount on either one ($5229) it still ends up with no taxable gain.  Perhaps because I had about $20k in "Exchange expenses" entered on the next screen with realtor commissions, closing costs, etc????
I appreciate your help.
Anita01
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Is different property received just a heading with no ability to enter an amount?
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Yes, it's just a heading.  There are only two options under it, the ones I copied
Anita01
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

The cash received would have nothing to do with exchange expenses.  I will have to recreate your situation to find the cash question, but will not be able to do so until tomorrow, sorry.
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Yes, that's what I thought too - that exchange expenses would be unrelated to cash received counting as a gain.  But if I fudge the number on the "Different Property Received" page, such as entering $25,229 under Promissory Note Received ($20k more than actual), then enter my exchange expenses on next page as $20,851 (which they actually were) then TT gives me a capital gain of $4,378, subtracting the latter from the former.  This is why I didn't think the "Different Property Received" header was the right place, but it's the closest thing I could find....
Thanks for your help and further investigations.  This is the last part of my taxes before I'm done!!
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

I can wait till tomorrow : )
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

Any update? Thank you.
redcat
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

I have exactly the same situation and the same questions.  Hoping for an answer soon, b/c then I too can be done with my taxes.
joelipj
New Member

How do I report "boot" from a 1031 exchange? I received a check, boot, from the QI for the money I didn't reinvest in the new property. Where to report this on TT?

OK, so I went ahead and paid for the Expert Help Live feature on TT and, after a long time of her reading the IRS forms and searching around Turbo Tax, she advised that boot be listed under Schedule D.   This is NOT accessible from the "Sale of Business Property" interview series that the 1031 sale sends you to.  Instead, under "Income and Expenses" heading we went all the way down to "Investment Income" and selected the category "Stocks, Mutual Funds, Bonds, Other" because of the "Other."When it asks you to "Choose the type of investment you sold" we went all the way to the bottom for "Everything else."  The next pages "Net Proceeds" is where we entered the boot amount, for me it was $5229.  For how we acquired it we put "Purchase."  Our cost basis for it was 0 and the date of purchase was the same as the date of the sale, all this year, in order to make it be taxed as short term capital gains rather than long term capital gains.  And that's pretty much it.  This reduced my federal and state tax refund the way that Boot should.  I don't know enough about the tax code to know if we did this right, but she was a CPA and seemed to feel good about this solution.  What I do know, and what she agreed with me on,  is that there is no place to put Boot from a 1031 under "Sale of Business Property," even though you still need to go through that interview to enter your basis for the old and new property.   Anyone have further thoughts before I send this to the IRS?
Dynamic AdsDynamic Ads
Privacy Settings
v