Sale of Like Kind Exchange Property

[peggysioux]

Taxpayer sold real estate in 2011 that was purchased with a LKE in 2006. The 8824 filed in 2006 is incorrect and the deferred gain and basis of like-kind property received is inaccurate. It is too late to file an amended for the 2006 return to correct so should I file the 4797 based on the correct information and if IRS questions, show them the corrections?

[Burke]

The correction of the Form 8824 on the 2006 return should not result in any change in taxable income to that return, does it? Don't know what the correction is, but only if there were unreported boot would that possibly happen. Not sure I would go to the trouble. Just use the corrected basis, cover your tracks with documentation, and report all in 2011.

[peggysioux]

Sales of Like-Kind Exchange Property

Thanks Burke, that is what I thought, just wanted to make sure that is how others would handle.

Peggy Sioux