1033 Condemnation/Exchange in ProSeries

Forum|Forum|2 years ago
March 4, 2024
2 replies
10 views

Hello,

A commerical building and land was condemned by the state in 2023. Taxpayer is trying to locate a property to purchase with the money from the condemnation, but hasn't found one yet. I know the gain is deferred until a new property is purchased, but how do I reflect 0 gain on the 2023 tax return?

Thank you!

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

By not reporting the proceeds.

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

S

sef6476Author

Level 3

Do I not need to report the disposition at all? or just override the gain to 0? There is no where to add "Deferred Gain per IRC 1033". When I remove the assets from ProSeries, a gain is automatically calculated on 4797 and it will look fishy if I just override the gain with 0.

S

sef6476Author

Level 3

I also received a 1099-S with the proceeds on it. I can't just ignore that.

Just-Lisa-Now-

Intuit Community Champion

I had one of these back in 2017? I think I pushed it in and out with manual entries on the 4797, showed the disposal/gain then deferred it on the line beneath it showing the 1033 deferral as the description.

Just so if anyone ever looks back at that year's return they can see that's when it happened.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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