GingerM Posted March 18, 2019 Report Posted March 18, 2019 In all my years of practice I have never handled the final sale of a property obtained through an exchange. Until now. Is it really this simple? 740,000 value of replacement property (740,000) deferred gain 0 basis The gain is the taxable sales price less closing costs. Quote
Lee B Posted March 18, 2019 Report Posted March 18, 2019 No, not quite that simple. Do a search for "1031 exchange rules" and you will flooded with resources and explanations. Quote
rscpa Posted March 18, 2019 Report Posted March 18, 2019 Need to fill out form 8824 - Like Kind Exchanges. Read the instructions.... 1 Quote
GingerM Posted March 18, 2019 Author Report Posted March 18, 2019 There will not be a replacement property - they are cashing out. The property being sold was the replacement property. Form 8824 was filed several years ago. Quote
Lee B Posted March 18, 2019 Report Posted March 18, 2019 12 minutes ago, GingerM said: There will not be a replacement property - they are cashing out. The property being sold was the replacement property. Form 8824 was filed several years ago. Then you need a copy of the 8824 from several years ago which will give you the deductible basis. Quote
GingerM Posted March 18, 2019 Author Report Posted March 18, 2019 I have that grateful the client kept the paperwork! Quote
Richcpaman Posted March 19, 2019 Report Posted March 19, 2019 If the replacement property had no basis, then the sale is all taxable. No 8824 needed. Just the 4797. Rich 1 Quote
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