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posted May 19, 2022 7:18:25 PM

1031 Exchange entered into F 8824 w/ $10k Boot received that went into F 4797. Turbo Tax recognized the Deferred Gain amount as taxable in the current year. Help please

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Level 15
May 19, 2022 9:13:34 PM

@may5455-gmail-co , I am not sure I understand the nuances of this situation.  I assume what you are talking about is a 1031 exchange  of a business property, where the exchange was completed within the tax year, and had a boot of $10,000.  Thus the $10,000 should be taxed as taxable income ( gain ) while the rest of the transaction is continuation  i.e. no gain / loss recognized for tax purposes but recognized  for accounting -- basis change, depreciable basis adjustment etc. 

 

Please can you explain the situation in more detail ( no personally identifiable info , please ) -- so I can figure out what TurboTax is doing  and/or misbehaving.

 

pk