What is the cost base of new property based on 1031 exchange

Forum|Forum|1 year ago
July 31, 2024
3 replies
12 views

1031 exchange

1. What is the cost basis of the new property?
2. What tax documents/ form will be received by clients
3. How to fill in data at the tax software to avoid capital gains ?

Case study: 1031 exchange

Old property
Purchase price 500k
Accumulated depreciation: 300k
Sold price 700K

New property:
Purchase price 800k

How to fill in data at tax software?
1. What is the cost basis of new property?
2. How to avoid capital gains by data entry?

This topic has been closed for replies.

Best answer by George4Tacks

https://www.the1031investor.com/calculators/1031-exchange-calculator/

Increase your CPE credits https://www.cpaacademy.org/search_webinar?search_box=1031&field_of_study=&professional_designation=&commit=Apply+Filters

sjrcpa

Level 15

https://accountants.intuit.com/support/en-us/help-article/federal-taxes/entering-form-8824-like-kind-exchanges-schedule/L5GQia3f5_US_en_US

The more I know the more I don’t know.

George4TacksAnswer

Level 15

https://www.the1031investor.com/calculators/1031-exchange-calculator/

Increase your CPE credits https://www.cpaacademy.org/search_webinar?search_box=1031&field_of_study=&professional_designation=&commit=Apply+Filters

Answers are easy. Questions are hard!

abctax55

Level 15

Word of advice - Susan (@sjrcpa) and I both do the Form 8824 by hand first, then force the software to match (We both use Lacerte, no PTO, but the software is similar). In Lacerte, the LKE 'helper' doesn't 'help'.

HumanKind... Be Both

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