Hi,
I have tried putting what I believe are the correct dollar amounts in the (Desktop 2024) TurboTax fields for doing a Like Kind exchange. But in a few screens later, TurboTax tells me that my amounts do not add up correctly.
Here are the numbers from the Sale and Purchase of the rental properties.
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Old property bought in: 4/6/2006 for: $ 388,562
Depreciation taken during rental: $ 124,516
Adjusted basis ($388K - 124K) of: $ 264,046
Old property sold on: 10/31/2024 for: $639,000
Fair Market Value of: $639,000
Total selling fees paid out of the $639K received: $35,161
(for commission, transfer tax, attorney, recording)
No mortgages/loans transferred or paid off.
New property bought on: 1/24/2015 for: $598,679
also paid fees of: $2,860
So, Fair Market Value ($598K + 2.8K) of: $ 601,539
No loans assumed.
Remaining 'Boot' cash payment received of: $2,300
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Here are the amounts I entered into Turbo Tax
I navigate to this screen using the "I will guide myself" method.
Screen: "Like-Kind Property Given Up" (the old property I sold)
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"Date you acquired the original property": 4/6/2006
"Date you transferred this property to new owner": 12/31/2024
"Adjusted basis of like-kind property you gave up": $ 264,046
"AMT Adjusted basis of Like-Kind property you gave up": $ 264,046
"Fair Market Value of Like-Kind property you gave up": 639,000.
"Value of mortgages/loans transferred or paid off as part of Sale": $ 0
[I Checked] the Box next to: "The like-kind property I exchanged was used in a trade, business, or rental."
[I did Not check] the box next to: "The exchange is eligible for an extension of time to meet the 45-day and 180-day requirements."
Then I get this screen -
Screen: "Like-kind property received" (the new property I bought)
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"Fair Market Value of the like-kind property received": $ 601,539
"Date you actually received the property": 01/24/2025
"Date the property you received was identified": 11/15/2024
"Loans assumed with property you received": $ 0
The next screen is called "Related part exchanges".
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It asks: "Did you make this exchange with a related party?"
I selected "No".
Then I get a screen called "Different property given up".
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It asks: "In this exchange, did you also give up any items other than cash that are different in character and nature than the main property that was the subject of the exchange?"
I select "No". (because I did not give up any other property.)
The next screen is called "Different property received".
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note: I did not receive any other property.
It asks. . .
"Description of the other property received.": I leave it blank.
"Fair Market Value of the other property received.": I leave this blank.
"Promissory (or installment) note received.": I leave it blank.
"Cash received.
(Include cash used for exchange expenses and not directly received)"
I entered: $2,300 (because I thought perhaps I was supposed to enter the 'boot' amount here.)
I click on the "Continue" button and I get this message in red text:
"Based on your previous entries for items exchanged, these values must add up to at least $ 37,461"
So, any idea as to what am I doing wrong?
Thanks for any help,
Jeff
