Where can I find form 1033, a form to defer capital gains tax on a gain received due to the casualty loss of a property?

[waynemathews2002]

I sold a rental property in 2017 due to the total loss of the building on the property. I plan to replace the property with another rental property of like or greater value and would like to defer the capital gains on the property with the replacement. I have been advised to file a form 1033 instead of a 1031 as the property was sold due to the total loss of the building on the property, not a voluntary sale of the property.I

[CherylW · Accepted solution]

Thanks Lisa995.

This, from IRS' Publication 544:

Election to postpone gain.   Report your election to postpone reporting your gain, along with all necessary details, on a statement attached to your return for the tax year in which you realize the gain .   

Replacement property acquired after return filed.   If you buy the replacement property after you file your return reporting your election to postpone reporting the gain, attach a statement to your return for the year in which you buy the property . The statement should contain detailed information on the replacement property.

Amended return.   If you elect to postpone reporting gain, you must file an amended return for the year of the gain (individuals file Form 1040X) in either of the following situations: 

• You do not buy replacement property within the replacement period. On your amended return, you must report the gain and pay any additional tax due.
• The replacement property you buy costs less than the amount realized for the condemned property (minus the gain you excluded from income if the property was your main home). On your amended return, you must report the part of the gain you cannot postpone reporting and pay any additional tax due. 

Here is the full text of Publication 544, Sales and Other Dispositions of Assets.  Section 1033 begins on page 10:

https://www.irs.gov/pub/irs-pdf/p544.pdf

[Lisa995]

@waynemathews2002   Since youre using the Desktop version, you can access the 1033 Election Statement within the program, you don't have to try and attach your own statement.   I'll give you a screen shot below.

[Lisa995]

Use Forms View   Click F6 then type  election  in the box...

[jer29-11]

Would you advise, "F6" function does not bring up a box or any options?  I am on the Downloaded Home and Business version, on a Mac Book Pro.  

[Lisa995]

Ahh, I don't speak Mac.   @macuser_22  can you assist?

[jer29-11]

OK!  I finally was able to retrieve.  Thank you!  The election is to defer, but it is asking me when i purchased replacement property - and I am using my deferral period (2 years) to replace... so I have a more IRS technical question.  Do i use the form for both the year I defer and the year I replace, or do I just use the form for the year I replace.  Tax season is not fun!

[jer29-11]

Thank you for your help Lisa995!  TT Home and Business did really help this year.  

[CherylW]

It's not a form, it's an election you make.  See below for a super user's advice.

[Lisa995]

I think they customer needs to know where and how to make this election for the Involuntary Conversion.

[BuddyonTT2]

Lisa,

Thanks for the tip of how to add the deferred 1033 exchange form on the desktop TT.

Can you help n how to handle the property report in TT to keep from paying the tax on the gain?

Cheers,

Buddy

[Critter-3]

@BuddyonTT2

The only way to handle this is in the downloaded program as described in the answer above your post ... there is no option in the online version. 

[BuddyonTT2]

Thanks for the reply.

I am using the downloaded version and I found the 1033 form thanks to above help.

BTW this is being done on 2019 TT in trial for 2020 taxes so I can calculate the correct of 3Q 2020 Withholding.

But this was a rental and I will need to (I think) report in the Schedule E the sale date.

When I do this, TT wants sales info there as well.  Should I just leave it blank there?

All the sales info is on the 1033 from anyway.

Cheers,

Buddy

[Critter-3]

Reporting the sale of rental : 

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that?jump_to=ans...

This is my mini version of  a tutorial  that should be in the downloaded program: 

What is Forms Mode?

Forms Mode lets you view and make changes to your tax forms "behind the scenes."

If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.

Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.

Related Information:

• Why would I use Forms Mode?
• How do I switch to Forms Mode in the TurboTax for Windows software?
• How do I switch to Forms Mode in the TurboTax for Mac software?
• What is-the-meaning-of-all-the-different-colors-in-forms-mode

If you want to play around with different figures and tax scenarios without affecting your original return you can ….

• >>>In the TurboTax CD/Download software by creating a test copy: 
• 1.  Open your return in TurboTax. 
• 2.  From the File menu, choose Save As. 
• 3.  Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name). 
• 4. Click  Save. You are now safely working in the test copy and anything you do here will not affect the original. 
•  https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

• >>  use the WHAT IF tool: 
• - Click Forms Icon (upper right of screen) or Ctrl 2 (forms view) 
• - Click on the Open Form Icon 
• - In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form 
• - You will see the worksheet on the right side of the screen; enter the information right into the form 
• - To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

1. From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
2. Browse to where you want to save your backup.
   • Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
3. In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
4. Click Save and then close TurboTax.
5. Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:                             

• Retrieve a Tax File from a Portable Device
• What's the difference between the tax data file and the PDF file?

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

• How do I save my return as a PDF in the TurboTax software for Windows?
• How do I save my return as a PDF in the TurboTax software for Mac?

AND protect the files :

• How can I protect the tax files on my computer?