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    Like Kind Exchange

    Client had a completed like kind exchange in September 2006 and had boot of $70,543, which I included in figuring gain in 2006 return. Problem in 2007 in that the exchange company withheld $4483 of the $70,543 boot from taxpayer until January 2007, but I included all boot in 2006. California filed a 593-B in 2007 for the $4483 boot. How do I handle being this amount was already figured into taxable gain in 2006? Did I handle incorrectly in 2006? The exchange was completed in 2006.

    Input appreciated!!!

    #2
    The 593-B is a withholding form. The sale should be reported to CA and the 593-B amount listed as CA withholding. It has nothing to do with the gain other than being part of the consideration recieved.

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