how to enter 1031 exchange of one property for two - form 8824

[dnaren]

The IRS instructions suggest using one 8824 form with "Summary" as the description of the property and attach the worksheets explaining how one property was exchanged with two properties. The TurboTax people are not updating the worksheets or the form to support this option. Even the existing worksheet for a scenario of one-to-one exchange  is horrible. Why not give us a blank worksheet option to deal with the 8824 form? 

I am forced to print and submit the tax forms and I hate it.

[TheWalruus]

This is a follow-up to @dnaren's comment.  I had a 1031 exchange with one relinquished property and two received properties and, per the IRS instructions for Form 8824, "[i]f you transferred and received (a) more than
one group of like-kind properties [...] don't complete lines 12 through 18 of Form 8824. Instead, attach your own statement showing how you figured the realized and recognized gain, and enter the correct amount on lines19 through 25" and then write 'See Attached Statement' on Form 8824.  Which I did.

And of course one needs to actually print out the return and mail it in with the accompanying statement. 

The problem is that within TurboTax, Form 8824 won't print--or be calculated into the return--unless you also fill out lines 16 through 18.   What I did was just fill the whole form out making sure that line 19 through 25 reflect the correct amounts, printed the Return, and then force printed a separate copy of Form 8824 with data in lines 16 through 18 removed and substituted that copy into my mailed return.  

[Critter-3]

Sorry but all of the DIY programs are written for use by the majority of the users however not all of the user needs can be covered correctly.  Some situations ( like complicated 1031 exchanges ) are better handled  by tax professionals and not by the taxpayer using a DIY program.    Professional tax preparer  can handle these more complicated situations  and can populate and attach the appropriate forms/schedules/worksheets as needed.  

If you want to tackle this yourself then  you will need to use the downloaded program using the FORMS mode and making up your own worksheets if needed and mail in the return if those attachments are needed.  

[TheWalruus]

@Critter-3, thank you for the reply.  My apologies, I did not mean my comment to read as a criticism of the product.   Rather, reading through the thread I got the impression that some people were having difficulty navigating a multi-property 1031 exchange using TurboTax, and I just wanted to share my success.  

Yes, I used Form 8824 in 'forms' mode, with attached supplemental worksheets, and I just wanted to mention the steps I had to take to get the form to print/include in my return.  

And yes, my tax preparer would have been more than happy to take this return off my hands (seeing as he does the other 8 K-1s and 1041s that I am responsible for).   That wasn't the point.

[samamen]

Do I need to upgrade to business turbo tax to finish this task?  my current version is premier.

It allows me to do 8824 1:1 exchange 

[Critter-3]

You need ANY of the DOWNLOADED/CD versions since you must make direct form entries in the FORMS mode which is only available in the downloaded programs.   If you are currently using the online version you can stop and switch without losing your current work ...

https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-th...

And if you are not comfortable then you could upgrade the online program to the LIVE CPA option where the tax pro will do it on their professional system for you.   OR  you can go to a local tax pro near you. 

[Anonymous_]

@Critter-3 is absolutely correct; either use any desktop (installed on a computer) version of TurboTax or use an online version with either LIVE or Full Service support.