Discussion:1031 exchange split years reporting

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Discussion Forum Index --> Basic Tax Questions --> 1031 exchange split years reporting


Discussion Forum Index --> Tax Questions --> 1031 exchange split years reporting

Kenthetaxman (talk|edits) said:

19 March 2013
Good Morning all!

I feel like this is more of a data entry question , but maybe I am wrong.

Client has a split year 1031 echange through an intermediary. Original Rental sold 7/28/12 , id property 8/15 house closed 9/20, but had a remaining gain of $65k. Intermediary held onto funds until the entire holding period expired 1/22/13 (personally I think they wanted to make money on the funds). I understand that through the installment agreement, the funds will not be taxable as boot until 2013, problem I see is how is it reported.

Easy part is new rental property has no basis as the gain was so large as they held property for so many years.

What am I missing?

Thanks...

PVVCPA (talk|edits) said:

March 19, 2013
Easy part is new rental property has no basis as the gain was so large as they held property for so many years. What am I missing?

Land.

The basis of the replacement property is not a function of how much gain was deferred. It's a function of how much basis remained on the relinquished property.

PVVCPA (talk|edits) said:

March 19, 2013
2012 Form 8824, Line 23 should show the total boot/recognized gain for both years 2012 & 2013.

2012 Form 6252 Lines 1-15 are blank. Line 16 & 18 will show the same total gain as on the Form 8824. 2012 Form 6252 Line 19 = 1.0. Line 21 will show how much of the boot was received in 2012.

2013 Form 6252, Line 21 will show how much of the boot was received in 2013.

Trillium (talk|edits) said:

20 March 2013
This discussion replaces the one Ken started earlier today - Ken, please click "talk" next to your user name above for more info. Thanks.

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