Would Turbotax consider a 1031 exchange to be by the same taxpayer if the sold land was title to the husband, the new land to husband and wife who file joint tax returns?

[cliffgoytowski-y]

The husband and wife have never kept their assets separate and live in OH.

[Anonymous_]

Would Turbotax consider a 1031 exchange to be by the same taxpayer if the sold land was title to the husband, the new land to husband and wife who file joint tax returns?

Yes, the Tax Code (Section 1031(f)) considers that exchange to be between related taxpayers. 

See https://www.law.cornell.edu/uscode/text/26/1031

[cliffgoytowski-y]

I probably was not clear in my question. The land being sold is titled to the husband and is being sold to a non-relative. The land being purchased for the exchange is being purchased from a non-relative and titled to the husband and wife. The 1031 agent is willing to release the funds for the purchase of the property because they feel that the husband alone and the husband and wife combined are the same taxpayer because they comingle assets and file a joint tax return using the husbands SS#. The question is would TurboTax create a problem with filing out the tax report to report the exchange?

[Mike9241]

Turbotax would never know that title was in originally in your name only and now is in both. Nor do I see an issue. you could have gifted your spouse a 1/2 interest in the old property before the exchange or gifted 1/2 after you alone acquired the replacement property.  there is no reporting of gift between spouses, except in certain cases which do not seem to apply in your situation, so a gift tax return would not even be required. 

[cliffgoytowski-y]

Mike, Thanks for the response. After reviewing the form 8824 that was my conclusion as well. I was concerned that TurboTax might asked some questions and then not allow the form to be used.

[Anonymous_]

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@cliffgoytowski-y wrote:

I was concerned that TurboTax might asked some questions and then not allow the form to be used.

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The only question TurboTax will ask is whether you made the exchange with a related party (obviously, not the case based on your most recent post).