1031 exchange


Y

yanks10952

Hope someone could help. I am doing a 1031 like kind
exchange for the first time and I am leaving me assets on
the books at the old amount so i will be depreciating them
on the old basis but if a gave up a 5 milllion mortgage and
transfered it to a 10 million mortgage I now need a debit
for 5 million dollars what is the debit for?
 
Ad

Advertisements

S

Shyster1040

What exactly did you do? It sounds like you exchanged
assets subject to a $5M mortage for assets subject to a $10M
mortgage; is that correct? If it is, then the basis of the
asset(s) you received in the exchange should be increased by
$5M (the excess of the debt taken on over the amount of the
debt given up). You will need to refigure your depreciation
amounts with the change in basis.
 
D

DORFMONT

If you send me your e-mail address I will send you my spread
sheet for 1031 exchanges. At the bottom where it calculates
the new basis, just subtract the carryover basis from the
total and assign the balance between land and building. It
also tells you how much tax you saved by doing an exchange
so I can justify my fee to my client ;-).

Linda Dorfmont E.A., CFP, CSA
 
Ad

Advertisements

D

D. Stussy

Shyster1040 said:
What exactly did you do? It sounds like you exchanged
assets subject to a $5M mortage for assets subject to a $10M
mortgage; is that correct? If it is, then the basis of the
asset(s) you received in the exchange should be increased by
$5M (the excess of the debt taken on over the amount of the
debt given up). You will need to refigure your depreciation
amounts with the change in basis.
One doesn't "refigure" the old depreciation. One treats the
debt assumed as a "new asset" and starts depreciation on it,
beginning with the year it was assumed.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

USA 1031-Exchange Form 8824 missing 0
1031 exchange 2
1031 exchange 1
1031 Exchange 17
USA 1031 exchange 0
1031 Exchange 0
1031 exchange 5
1031 exchange 7

Top