like-kind real estate exchange

[thoswolf]

I sold rental property and bought new property to achieve a tax-free exchange. TurboTax thinks I sold property & kept the proceeds rather than exchange. Where do I correct this?

[GeorgeM777]

The process to enter a like-kind exchange in TurboTax begins with the Sale of Business Property.  In TurboTax online, from Wages & Income (left margin) scroll down to Other Business Situations and select Sale of Business Property.  In TurboTax CD/download, select the Business tab, then Business Income and Expenses, and then scroll down to Less Common Business Situations and select Sale of Business Property.

After selecting Sale of Business Property, the screens in either version of TurboTax are similar.  There will be a few preliminary screens and then you should see the screen, Real estate given up.  This will be followed by Like-kind Property Given Up and Like-kind property received. As you continue to move through this section, eventually you should see your like-kind results and any taxable gain.  The basis in the replacement property should also be displayed.  

Did you follow the above process?  

@thoswolf 

[thoswolf]

Hello George:

Thanks for your reply. I was unable to find the “Business tabs,” but I managed to define my problem a bit more specifically.

I filled in Form 4797 and Form 8824, and I'm still facing a tremendous taxable gain. TurboTax doesn't recognize the information I submitted on Form 8824 and is confused that I left the “Cash received” line blank. Can you give me some direction to move beyond this blockade?

Many thanks,

rex