Hello,
Last year, I used a 1031 Exchange to trade a rental property in Indiana for one in Tennessee. Using the instructions from this helpful discussion, I found the relevant fields to fill in, and I believe I filled them in properly. But a strange thing is happening.
In the "Like-Kind Exchanges" summary page, I'm seeing a recognized gain of $29,785 and a Deferred Gain of $54,320:
Yet for some reason, when I click "Done," I see a loss of nearly $120k in the "Sale of Business Property" section:
This exchange is the only thing I entered into that section, so I have no idea where this loss is coming from. It's changing my total income pretty significantly and resulting in a lovely tax refund that I really don't deserve. Any suggestions on how to fix this?
You'll need to sign in or create an account to connect with an expert.
You are most likely going to have to provide more details on the transaction, such as the FMV or the relinquished and replacement properties, accumulated depreciation, whether boot was received, etc.
It depends on whether there is something to fix. The realized gain and the deferred gain are not causing the loss amount you see in the Sale of Business Property. Sales of business property entered in other sections of the TurboTax interview will show up on the line that you see for Sales of Business Property. Thus, it could be that some business loss has been reported elsewhere and that amount(s), when combined with your 1031 exchange information results in a total loss. As an example of a loss that is reported elsewhere in TurboTax but would show up in the Sale of Business Property is any loss reported on a Schedule K-1.
Let us know if you have reported losses elsewhere in your return as that information will help us to better understand your tax situation.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
theleeb
Level 3
allthingsfantast
New Member
Fisher101328
New Member
Samantha123
New Member
gilbarcomv
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.