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kxjb-I3796-xezcj
Level 1
April 4, 2023
Question

8824 like kind exchange

  • April 4, 2023
  • 3 replies
  • 65 views

I did rental property 1031 exchange  on 2022. I filed form 8824 & 4797 and 8824  showed I have deferred long term capital gain. However, on schedule D it still showed I have huge long term capital gain (without  deferred ). Please help.

    3 replies

    AmyC
    AmyC
    Level 15
    April 4, 2023

    It sounds like you marked the rental house as sold and entered the sales information in the Sch E. You have already marked the house sold on the 8824 so the Sch E needs to be marked as converted to personal use. This will give you the proper depreciation until the exchange. You may need to redo your Form 8824.

     

    Please return to your Sch E for the house. If you click the Learn More button next to sold, it will tell you not to enter sales from a 1031 here.

     

    Let us know if you need any more help!

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    checkerj
    Level 2
    June 11, 2023

    I ran into this exact same trap, and had both 8824 and 4797 created, as well as a taxable capital gain.

    Tried to delete the 4797 forms but wasn't able to (TT confirmed deletion, but forms were still there).

    Finally figured out a way around:

    - Go to the relinquished property, choose YES on the "Did You Stop Using This Asset" page

    - Fill out the dates for "Date of Sale or Disposition"

    - On the "Sales Information" page, leave all 4 boxes blank (Asset/Land Price/Expenses)

     

    Now TT will correctly calculate the depreciation for the relinquished property, and does not generate a 4797.

    Of course, you'll still need to go through the other place to create 8824 form, and also add in the replacement property.

     

    Version that I'm using: 2023 online version

    Critter-3
    Critter-3
    Level 15
    June 11, 2023

    Version that I'm using: 2023 online version   Hint : you are using the 2022 online version ... the 2023 will not be available until next December.

     

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