2020 Basic (from disk) has a Like Kind option in the topics list but there is no ref there to 1031.
1. Will that be corrected for 2021 tax year?
2. Do I have to upgrade?
3. Once upgraded for 2021, in future, can i continue with Basic TT?
Very few of us (or none of us) actually use Desktop "Basic", but it should be in there.
With your tax return open, In the upper right corner click on the "Search" function, then enter 1031 and then click the magnifying glass: on my premier system, clicking on the first hit below it (Where do I enter a like-kind or Section 1031 Exchange (Form 8824) ? gives good stepwise instructions on how to proceed.
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Beyond that.
1) No, don't really know if you have to upgrade.
2) Every tax year software is separate. For desktop software only, at least in the past, you didn't have to use the same software every year. i.e. if you used desktop Deluxe in 2019, you could use Basic in 2020 and still transfer any needed carry-over info into a lower level software product the next year. I can't guarantee TTX will continue to allow that in the future.
( Certainly, the "Online" software does not allow full transfers of some tax situations to a lower level software version in a succeeding year, depending on what's in the prior year's file )
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3) You may live in a non-income-taxing state....BUT We always caution folks...Make sure you don't have a state tax return to file. Desktop Deluxe (with one state included) is cheaper if you have a state to file...(and even then, desktop Deluxe from 3rd parties may not contain that free state download in some packagess...so check the purchase description closely. Desktop Premier and H&B have always included one state download...but e-filing the state in any desktop version always has a $20-25 fee, ((except NY)))
Look for Form 8824, which should be in the program (the desktop versions contain all of the forms).
However, with TurboTax Basic, you will most likely not get any guidance regarding how to enter the transaction (so you might be relegated to using Forms Mode to enter the exchange).
Quite frankly, if you have never reported a 1031 exchange before, you might want to seek professional tax guidance for the 2021 tax year.
Unless the exchange was simply a one property for another with no boot situation then doing this yourself may not be wise and using a paid tax pro for this tax year would be wise to get the 1031 exchange done correctly ... then come back to a DIY option the following year.
in 2020 Basic TT, when I go to Forms\open forms, enter 8824, it populates in the search box but it is not hot so cannot complete the search and open the form. Is that because it is not in the Basic version?
If not, how can I find out now which TT version I need for 2021 that WILL have 8824?
The 8824 is in ALL of the downloaded versions ... https://turbotax.intuit.com/personal-taxes/irs-forms/
thanks for screen shot and that is as far as i can get with 2020 TT Basic on my laptop loaded from the CD. nothing is hot to click on.
I am puzzled by the link you provided that reads "
as I use the CD version and 8824 is not hot to open
i updated just yesterday to look for that form. I update every time i open the program
And the entry of the like kind exchange is handled in the asset section when you sell off the asset ... using the form to make direct entries will probably required entries on more than one worksheet.
Please contact support via phone for assistance with this; contact details can be found here
strangely, i went back and repeated the process and this time the from did load. thanks.
Also...but not sure it is the case in your situation. TTX doesn't always operate properly if you have a partially-installed Windows update waiting.
There was a Widows update issued this week, so check that first and ensure that was fully-installed and computer re-booted a couple times first.
@rodderrs wrote:
strangely, i went back and repeated the process and this time the from did load. thanks.
Hopefully, the property being exchanged is real property because personal and intangible property no longer qualify as a result of tax reform (the TCJA).
Also, hopefully, you are aware of the rules regarding depreciation if the real property is used for rental purposes. This will add another layer of complexity when deciding whether or not to continue depreciating the relinquished property on its schedule or elect out. If you need to ask which of the foregoing would be optimum in your case, then you most definitely need to consult a tax professional.
now i am puzzled why you say almost no one uses Basic. I thought it was great. (but then you don't know what you don't know!) What makes you go for the upgrades that basic lacks?
There is nothing inherently wrong with Basic beyond being relegated to using Forms Mode for some entries.
The upgraded versions simply offer additional guidance in Step-by-Step mode.
What I had meant...up in the first post...was that few, or perhaps none of us who are experienced forum helpers, actually uses the desktop "Basic" edition. So sometimes we can't always see exactly what a user sees for that software package's display and it's exact software progression when they are answering a question that relates to the "Basic" edition.
Certainly, one of the primary reason's why few of us actually use "Basic" is that the higher versions come with one free state software download ......and Basic never does, while most of us need at least one state to file. So a user that has to prepare and file a state, will always have a lower software cost by using one of the higher versions right from the start.
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A crude summary of what the higher versions offer for "help" can be seen if you access, and scroll down on the desktop comparison page:
https://turbotax.intuit.com/personal-taxes/cd-download/
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One other reason for using any desktop software itself, as already noted by tagteam, is the availability of a "Forms Mode' to see easily see the actual forms the software is filling out for you at any time you want to take a look
....the BUT to that, is that one year TTX eliminated "Forms" displays for the Basic users. A real stink was raised about that and it was re-initiated later. No telling what TTX will do in the future to make "Basic" less minimally useful.....that's between the TTX powers and their marketing folks advice.
thank you for all the comments. Since i do not have to file a state return, the pro/con was not so obvious. I appreciate the time and effort to help me
When I worked for TT support I had access to ALL of the programs and trust me ... ALL the downloaded versions work exactly the same way. Basic can handle all the same forms and situations. The only thing that Basic doesn't have is an included state return and the ability to import from "It's Deductible".
The only thing upgrading to a higher level does (aside from taking more of your money) is it gets you more guidance in certain sections (aka a longer interview process with more screens to click thru) which I personally find unnecessary since you get the same info by simply clicking on the blue "learn more" hyperlinks. So I always say to start with the Basic (or Deluxe if you need a state return) and only upgrade if you feel the need for more "hand holding".