1031 question "Report this transaction" Sched C vs Sched E vs no entry

Forum|Forum|3 years ago
January 23, 2023
1 reply
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I did a 1031 like kind exchange of one rental property for another rental property. I received a small amount of cash during the transaction, which I know has to be reported as gain.

I got through the 8824 process reasonably easily but I am stumped by what looks like the very last screen where TT says:

Report this transaction

Would you like to report this transaction on one of these activities

• No entry

• Business (schedule C)

• Rental or Royalty Property (schedule E)

It's obviously not schedule C. My question is whether the correct response here is "no entry" or "schedule E."

In researching this, I came across something that suggested that if no gain was recognized, then "no entry" is the correct response. Does this mean that because I had a small gain, I need to check the "schedule E" box here?

Thanks.

Anonymous_

Level 15

@rcamner wrote:
Does this mean that because I had a small gain, I need to check the "schedule E" box here?

Which version of TurboTax are you using?

The only difference I have ever seen this entry make (checking the box indicating that the property was used in a trade/business or rental) is it brings up a couple of screens for depreciation recapture. Otherwise, I have not seen where it matters it terms of "linking" the 8824 to Schedule C or Schedule E.