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Fakename
Returning Member

One for multiple property like kind exchange in Turbo Tax Premier

Hello,

 

I exchanged a property this year for 4 other properties (3 houses and a piece of land). The TT interface seems to only handle one for one exchanges and even if I open up the form 8842 it doesn't seem to allow me to list multiple replacement properties in any way. Is there a way to accomplish this in Turbo Tax Premier desktop version? I've read several articles but none seem to apply to multiple replacement properties.

 

Thank you very much in advance for you assistance.

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3 Replies
DaveF1006
Expert Alumni

One for multiple property like kind exchange in Turbo Tax Premier

Although you can include multiple properties in one exchange, you need to generate separate 8824 for each property exchanged. When multiple properties are either relinquished or received, the taxpayer should prepare a schedule to show the detail by property.  This schedule is kept for your records to use to prepare your 8824 and for IRS purposes if there are questions about the exchanges.

 

Since you are using Turbo Tax desktop, go to forms>open form>type in 8824. There will then be an 8824 form. You can actually enter information on the form itself regarding the individual properties. After the first form is complete, then go through and add the second one and complete that. Do this until all four 8824's are complete.

 

 

 

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Fakename
Returning Member

One for multiple property like kind exchange in Turbo Tax Premier

Thank you @DaveF1006 , I will give that a try, a couple of follow up questions:

 

1.  When I'm listing the relinquished property under the rentals, do I mark it as sold?

 

2. Do I just bypass the like kind section in the interface since it seems to only be able to consider one replacement? I started filling it out when I found this issue, now I may just have to back the info out.

Fakename
Returning Member

One for multiple property like kind exchange in Turbo Tax Premier

@DaveF1006 , I tried this , but it seems when I try to create multiple sheets like this that it seems to be reading it as though instead of selling one house for $600K I sold 4 houses for $600K. Each form seems to be positioned to be specific to a separate piece of relinquished property, rather than received property. What am I missing? Do I need to subtract the amount covered by the first property on the 2nd form?

 

For example is the relinquished property is $600K and the fiorst replacement property is $200K do I approach the 2nd form with the relinquished property being $400K? Seems like that would not be the case, but when I create multiple forms it seems to be handling it as 4 different houses relinquished at $600K.

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