Level 6

Question

Property sale no 1031

Forum|Forum|1 year ago
May 1, 2025
3 replies
17 views

A friend of mine used another preparer. This preparer told them because they sold land and bought a home within the 180 day period they were fine on taxes. They did not do a 1031 exchange.
Everything I’ve read and know of they didn’t do the 1031 they have to pay taxes on the land sale - basis. Correct?

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IRonMaN

Level 15

Hopefully that preparer works for free since he shouldn’t be paid for giving that terrible advice.

Slava Ukraini!

J

judys3Author

Level 6

When someone comes to you for advice and they don’t take it and go else where it’s kinda funny but not. I do feel bad for them. Now I get to help them correct after they’ve received letter from IRS

IRonMaN

Level 15

If a 1099 was generated they will get a notice. If not, they might have gotten away with it.

Slava Ukraini!

qbteachmt

Level 15

"and bought a home within the 180 day period"

I'm guessing that other preparer is pretty old. That rule changed in the mid-1990s. Primary residence doesn't qualify for exchange. Now the regulations offer the exclusion of gain on a residence.

Don't yell at us; we're volunteers

J

judys3Author

Level 6

I will have to ask! I never thought about that. I know for the 1031 exchange you have 180days and thought that's where she got her information. My friend has yet to come in so I am still curious!

J

judys3Author

Level 6

Update. She can not get in touch with the old preparer and they did receive a 1099. I've let her know I can help her straighten this out if she will just come in. Lesson learned.

IRonMaN

Level 15

They had 180 days to buy a house and 18 days to get back to him before he disappears 😁

Slava Ukraini!

J

judys3Author

Level 6

🤣............run forrest run!

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