1031 like kind exchange

I have a 1031 like kind exchange. Turbo tax created a Sch D and a 4797 and recognized a taxable gain. I deleted all real estate entries and tried to enter just the exchange not anything related to a sale. The forms were still created. Others said to zero out the Sch D and 4797. However the new property cost $12,000 less than the property sold so I need to recognize the $12,000 gain. But not the erroneous $128,000 gain that turbo tax created.

Separately, turbo tax recognized a full year of depreciation when I sold the property after 6 months of the year? How do I not claim depreciation expense on property sold in the same year?

1012

1 Best answer

Level 15

Jul 28, 2020 7:02:57 AM

It almost appears as if there is either an input error and/or you are entering the transaction in the wrong section of the program.

Ensure that you are entering the transaction in the Sale of Business Property section of the program (under Less Common Business Situations) and that the appropriate box is checked (see screenshot).

You might ultimately want to contact Support, via the link below, for further assistance and step-by-step instructions for entering this transaction.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632