Exchange Worksheet
Posted by taxguru on May 5, 2006
Q:
Subject: Exchange QuestionDear Tax Guru:One of my clients did a 1031 exchange during 2005, and I want to make sure I’m handling the accounting for the transaction correctly. There was a cash boot paid for the new property. I would like to know the specifics of the needed entry for book and tax purposes. Any guidance you can provide would be greatly appreciated.Sincerely,
A:
You generally want the books to match the 8824 for the exchange. If your tax prep program doesn’t produce detailed worksheet for exchanges, as Lacerte just started doing a few years ago, you can use a manual or computerized worksheet.
CFS’s TaxTools program has some excellent 1031 exchange worksheets that I often use to double-check the Lacerte 8824.
Several years ago, I posted a manual worksheet on TFEC’s website that is also very useful.
Good luck. I hope this helps.
Kerry Kerstetter
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