title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Friday, May 05, 2006
 
Exchange Worksheet

 

Q:

Subject: Exchange Question
 
Dear 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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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 5/05/2006 02:54:00 PM Send this post:

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