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

[miamipoker]

I am having the same issue.  The rental I exchanged was used in a trade/business. I have a taxable boot. 

After completing the 8824 is asks "would you like to report this transaction on one of these activities? "  

No entry

business Schedule C

Rental or Royalty property (Schedule E) 

Using TT home and business desktop

I'm thinking It is wanting to know where to report the taxable boot? 

[rcamner]

I specified "report on schedule E" because it was a rental property. It changed nothing at all when I did that. 

It doesn't report the taxable gain from the boot on schedule E, which makes sense, since schedule it doesn't seem to have a place for a capital gain.

[MonikaK1]

When you complete Form 8824 in a Desktop version of TurboTax, you can go to Forms mode to see whether you have any gain recognized from the exchange (Line1 21 - 23) and if any of the gain qualifies as deferred (Line 24), in which case the gain would reduce your basis in the new property (Line 25).

TurboTax will transfer any gain recognized as calculated on Form 8824 to the appropriate forms (Schedule D, Form 4797, Schedule 1).

Check the Assets section for the appropriate Schedule (C or E) to be sure that the new property is listed. Make any additional entries needed, such as to identify the proportion of the new property's adjusted basis that represents the value of land.

See this TurboTax article for more information on like-kind exchanges.

@miamipoker