1031 exchange

[Bart]

I am trying to do a partial 1031 Exchange on a rental house held in a partnership. I can not seem to get Form 8824 to calculate the taxable portion correctly. Rental house sale price $200,000. Basis $140,000. Only purchased a new Rental for $170,000. Original Purchase price of Property sold $150,000

[jklcpa]

What is being calculated?

[mircpa]

You need to first find out what % of original property is being sold then split asset, create separate asset entry in 4562 & you can do 8824.

[DANRVAN]

On 3/25/2020 at 6:06 PM, Bart said:

$200,000. Basis $140,000. Only purchased a new Rental for $170,000. Original Purchase price of Property sold $150,000

Looks like there should be $30,000 received as boot.  

Realized gain of $60,000,   $200,000 - 140,000

Recognized gain of $30,000  = cash or boot

Deferred gain of $30,000    realized gain less recognized gain

Basis of new rental $140,000,   fmv of new less deferred gain, also basis of old in this case

I prefer to run the numbers outside of the program first, then input into 8824 and make sure it comes out right.