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mgbacot
Level 1

2021 Journal entries for partnership deferred 1031 exchange began 2021, ending 2022?

What journal entries do I make for a rental property sold mid December, with proceeds going to a QI to complete a deferred 1031 exchange? The new rental property was purchased March 1st and met all criteria. I understand the completed exchange should be reported on the 2021 tax return. 

2 Comments 2
BigRedConsulting
Community Champion

2021 Journal entries for partnership deferred 1031 exchange began 2021, ending 2022?

This is an accounting question where the answer probably depends heavily on your business case. I don't think anyone here can know the answer.

Rainflurry
Level 12

2021 Journal entries for partnership deferred 1031 exchange began 2021, ending 2022?

@mgbacot 

 

You are correct that, although the exchange was completed in March 2022, it needs to be reported on your 2021 return.  To help you with recording this, here's what's needed: the values of the exchanged property, FMV of property received, accumulated depreciation of exchanged property and selling expenses.

 

 

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