Level 4

1031 exchange when a 1099-S is received before the exchange is complete

Forum|Forum|7 years ago
March 14, 2019
2 replies
21 views

Please help! client sold his residental rental building on Dec. 28, 2018 earmarked thru the contract for 1031 exchange. he received a 1099 S FORM with line 2 filled in for gross proceeds of $760,000. How do I notify the IRS that this transaction is a 1031 exchange. He has the same type of residental rental building that he will be buying with that money in roughly 3 weeks, his loan has been approved, And what do I do with the depreciation he has taken from the 10 years on the old building. What do I do with the closing costs, if anything. Thank you

ProSeries Basic

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I

Intuit_Devin

Level 4

CORRECTED: The 8824 will explain the 1099-S. You may need to file an extension in order to have all the closing details necessary from this transaction.

C

CVTS

Level 4

I too have a 1031 Exchange all completed in 2018. Also received a 1099-S. Do I complete the 8824 first and what about the asset worksheet for the old asset and the new asset?

I don't want to miss a step.

IntuitCharlene

Community Manager

https://accountants-community.intuit.com/articles/1608733-1040-completing-a-like-kind-exchange-of-business-property-1031-exchange walks you through the process of a Like Kind Exchange in ProSeries so you don't miss any steps.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Accept as solution" and then just changing the Accept as solution to Mark as Best Answer, mine gets cutoff, so it is too long. I changed mine to the following and it fits. -->**Say "Thanks" by clicking the thumb icon in a post**Click "Mark as Best Answer " to mark the post that answers your question.

M

Marc-TaxMan

Level 7

@corinne91 NOTE: actual filing 2018 1040 TERMINATES the 180 day exchange peroid early.

If you file 2018 1040 before leg 2 of exchange is done, the exchange fails as not bening completed during allowed exchange period.

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