Like Kind Property

[JT2307]

I have a client in process of like kind exchange thru intermediary - thinking ahead does the deferred gain on the property he is selling get added to basis of the one he is buying? or does the gain get reported when he sells the new property.?
I will be taking a few courses before tax season to refresh my memory.

But thank you for the help.

[New York Enrolled Agent]

I have a client in process of like kind exchange thru intermediary - thinking ahead does the deferred gain on the property he is selling get added to basis of the one he is buying? or does the gain get reported when he sells the new property.?
I will be taking a few courses before tax season to refresh my memory.

But thank you for the help.

Have you worked through a Form 8824 with your numbers?

[JT2307]

Not yet. He is bringing numbers to me on wednesday.

[BOB W]

I have a client in process of like kind exchange thru intermediary - thinking ahead does the deferred gain on the property he is selling get added to basis of the one he is buying? or does the gain get reported when he sells the new property.?
I will be taking a few courses before tax season to refresh my memory.

But thank you for the help.

Doesn't the deferred profit get SUBTRACTED from the new home basis?

[JT2307]

Yes subtracted not added. I am clear on where the numbers are going now.....