1031 sold is it ordinary income?

Forum|Forum|4 years ago
April 28, 2022
1 reply
6 views

Client I prepared return last year had 1031 exchange No problem. This year he sold that exchange in a few short months. He had long term gains deferred last year in the exchange.

I have never had an exchange then turn around and sell it right away. Lacerte is calculating the deferred as ordinary income.

does all the deferred become short term since the new property he aquired he turned around and sold. Was trying to look it up but not sure

thx

Lacerte Tax

This topic has been closed for replies.

abctax55

Level 15

The carrying period of the old property transfers to the new property. You may need to override short vs long term.

HumanKind... Be Both

M

Moine

Level 3

Hello,

I have the same problem, I use proseries . When I enter the sale date and Sales price system shows a short-term capital gain. Someone advises me to put the original date of service then all gains would be long-term, then the tax return will be incorrect, would you please advise how do I handle the problem?

abctax55

Level 15

".... then the tax return will be incorrect,"

No, it won't be. As has already been stated, the holding period of the old property carries to the new property.

HumanKind... Be Both

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