how do i do a 1031 exchange for two old properties exchanged for one new property

Forum|Forum|2 months ago
April 6, 2026
1 reply
5 views

I have two sides of a duplex that have been exchanged for a single structure. The original properties are set up as two entities in the depreciation schedule.

Lacerte Tax

K

Karl

Intuit Community Champion

I personally wouldn't use the embedded LKE Wizard. I think it's more built for single-property to single-property all in same state LKEs, and my clients get too bored to do those kinds.

I would open the escrow doc, the 8824 instructions, Excel, and your CY depreciation schedules with disposition dates input in CY as of the date of the exchange. I'd make my own deferred gain spreadsheets. Then I'd input the LKE batch transaction on Screen 17, not 22. I'd add the new rental on Screen 18 (mark the old ones to delete next year if you have any CY activity to report) and new depr assets on Screen 22.

Forgive me, I might have gotten some of this wrong, I'm going mostly from memory, I haven't had a multi-property one of these for a couple years. And I'm a bit tired at this point of tax season, more thanks to my 2yo than my clients.

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