Client sold rental property and bought rental property in a well documented 1031 exchange. No problem with the 8824. I can't find an IRS document that shows what all has to be filled out for a 1031. Unfortunately the client bought a less expensive rental and boot is involved. My program is generating a 4797 on it's own that looks like death warmed over. If they had simply sold the old property it wouldn't come up with numbers like this. Basis is not being taken into consideration at all. I know something will be paid on the boot, but how is it actually handled? I can't just give this to my client without understanding where the numbers are coming from.
Any help appreciated.
Cathe
Any help appreciated.
Cathe