Form 8824 for 1031 exchange taxes
Hello,
I recently hired an accountant to do my taxes which include a 1031 exchange. Prior to hiring I confirmed with the accountant that he is in fact familiar with this process. Now, my files are ready to be submitted to the IRS; however, I would like to confirm if the numbers on form 8824 are correct. Any help would be appreciated as to my understanding if it is filled out incorrectly, it could lead to a denial.
Scenario:
Relinquished: Purchase price $120k in 2/2016 - sold for $225k in 2018
No improvements, depreciation over 2 years = $7k
Received: Purchase Price $403k
My accountant did the adjustable basis.... at ~$240k and realized Gain at ~$162k (lines 18 and 19 on form 8824 respectively).
Many thanks for any input. Please let me know if I left out any relevant information.
My calculations would be:
$316k (line 18) $87k (line 19)
Based on: $113k (Adjusted basis of like-kind property you gave up) + 203k cash or loan (net amounts paid to other party) -> $403k - $200k (cash from sale of property) = $203k