Why tax 2023 calculated gain in form 4797 lines 6 and 7 while generating like-kind exchange form 8824.

pgmjvp-2021 · ‎March 31, 2024

I exchanged rental property in NJ to a rental property in FL. Was pure like-kind exchange.

DianeW777 · ‎April 3, 2024

It depends. If there was any 'boot' included in the exchange you could have taxable gain.

Boot: Any property or money you might have received that is unlike property in the exchange would be immediately subject to capital gains tax.
- IRS Publication 544
- IRS Fact Sheet for Section 1031 Exchange
Qualified Intermediary: The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary. However, notice to your attorney, real estate agent, accountant or similar persons acting as your agent is not sufficient.

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DianeW777 · ‎April 3, 2024

It depends. If there was any 'boot' included in the exchange you could have taxable gain.

Boot: Any property or money you might have received that is unlike property in the exchange would be immediately subject to capital gains tax.
- IRS Publication 544
- IRS Fact Sheet for Section 1031 Exchange
Qualified Intermediary: The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary. However, notice to your attorney, real estate agent, accountant or similar persons acting as your agent is not sufficient.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Do you have an Intuit account?