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Discussion Forum Index --> Tax Questions --> Preparing returns with 1031 exchanges
JDcpa (talk|edits) said:
| 20 February 2007
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| I'm not afraid to admit I have no experience with and little exposure to 1031 exchanges. I have a new (prospective) tax client who sold assets of an S corporation (including land and building) and did a 1031 exchange for other land and buildings under advice of a 1031 expert under the same S corp. They are looking to me to prepare the 1120-S and their 1040. Can anyone who has done this give me an idea of what is involved in preparing these returns or where I can put my hands on what is involved in preparing these returns? I don't know how complicated this is. Thanks in advance.
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JDcpa (talk|edits) said:
| 20 February 2007
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| Kevin-that is my understanding. The way it was explained to me, the S corp that sold the land and building has purchased (in 2006) and currently holds other real estate in a 1031 exchange. I assume their personal return will be straightforward with just a K1, but its the 1120-S I am unsure of.
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Kevinh5 (talk|edits) said:
| 20 February 2007
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| You will want to get all the settlement statements, a copy of the Qualified Intermediary agreement, a copy of the notice of replacement property, and you should already have the S corp's basis in the relinquished property. This is an involved process (I take 2 hours to teach the concept to tax professionals, but there are some experts here who have done more than I have). The IRS form will not help you a bit. Do you have the CFS program Tax Tools? It has a 1031 module/worksheet (but you have to know the law to get the answers correct).
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