Question

How do I report a 1031 like-kind exchange on my PA State Taxes?

Forum|Forum|1 year ago
February 22, 2025
1 reply
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PA approved 1031 exchanges in 2022 and we should be able to report the sale and defer the capital gains. But I do not see a way to do that in TurboTax.

J

JotikaT2

Your initial input for the 1031 like-kind exchange will need to start in the federal interview section. This input will then transfer to your state return.

Where do I enter a like-kind or Section1031 exchange?

After you enter the applicable information in the federal interview section, proceed through the state interview screens. You will see a screen titled PA Ownership of Gains and Losses.

Be sure to input the correct basis in the cost basis box and mark the box that says this sale is not taxable in PA. This will ensure the gain is not reported until it is eventually reported on the sale of the property that is exchanged in the future.

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H

huntertech

I assume the example shown is for the online version.

How would we do this in the downloaded MacOS version?

I properly completed the Federal 8824 showing the property given up and the new property acquired, along with the required dates and values.

Unfortunately TurboTax did not appear to fill out the PA 40-D properly. It shows the property given up but also shows a "created" property simply labeled "Residential" with a bogus acquired date, the same sold date as the actual sold date of the given up property, no Price and a seemingly made up Cost .

I do not see how TurboTax indicated this was a like-kind (1031) exchange (both are rental properties).