Discussion:1031 exchange accounting
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Discussion Forum Index --> Accounting Questions --> 1031 exchange accounting
| 26 March 2007 | |
| How do you account for a 1031 exchange when you are selling three properties for one and giving up mortgages and getting a larger one. Also, how specifically do you account for the exchange money and the deferred income? | |
| March 27, 2007 | |
| I think I would start with a spreadsheet and record the easy parts of the entry first. Cash gets debited to cash. Deferred income is a liability. Some of the closing costs might be expensed, others might be capitalized. Mortgages get debited as well as any intereste expense. Then the big part is adjusting the basis of the new property to include the basis from the three sold properties. Of course, if you have any boot, then you have some gain to recognize, which might be challenging to calculate. Good luck! | |
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