Turbotax 1031 Exchange Questions

[Tony H.]

Hi BP,

I am having an issue with Turbotax Premier. I really dont think this is asking for a tax advice (I would have gone to a CPA..), but I was just wondering if any of you use Turbotax to do your taxes that involves 1031 exchange.

I called Turbotax.. the customer service cant really help and keep referring that I need to upgrade to Turbotax Live (pay more money).

Here is my issue:

In the Wage & Income Section, Under Rental Properties, I have indicated that I have 1031 Exchange (like-kind exchange) in 2019. Everything went through just fine until I got the part where it calculated that I received Cash from the exchange process ( I did NOT).

Here is what happened:

Duplex Sold price 375,000

Mortgage Owed 220,788

After all fees, I got $129k to be put towards a down payment on the replacement property.

Replacement Property

Purchase Price + closing costs $589k.

Mortgage taken $438,750

I put roughly about $21k on top of the $129k from the Duplex to cover the DP and closing.

So, how did Turbotax assumed I received cash of about 8k from the transaction?

Thank you!

[Eamonn McElroy]

@Tony H.

Serious question...and I mean no disrespect by asking this...but if you don't understand the form (and associated tax law) well enough to know why TurboTax is telling you that you received $8k of cash and whether or not it is an error, how do you expect to be able to review the form for accuracy before you file it with the IRS?