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OK THIS is a long question Form 8824--I sold a rental property

Customer Question

OK THIS is a long question Form 8824--I sold a rental property for 175000.00 My original purchase price many years ago was 80000.00. Went to an attorney he did a LIKE-kind exchange for 1/4 interest in a rental retreat house in the mountians. (Bought out my sisters share) now I own 100% for 100000.00 I am lost on form 8824 line 14 line 15 line 16 line 18.
LN 15 cash recieved FMV of other property - I believe this would be my rental house I sold for 175000.00?
LN 16- would be 100000.00
LN 18 Adujusted basis of like-kind property you gave up ?? HELP
Submitted: 3 years ago.
Category: Tax
Expert:  rakhi.v replied 3 years ago.

rakhivasavada :

Dear Friend, Hello and welcome...

rakhivasavada :

Kindly remain online as I prepare your reply...

rakhivasavada :

From what I understand from your question... YES.. that should be your rental home you sold off. The figure of 100000 is the adjusted basis after your sisters share was bought out. So are correct in understanding this.

rakhivasavada :

I hope this helps...

rakhivasavada :

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Warm Regards

Customer: replied 3 years ago.

Ok so far ok. But line 18 of form 8824 ASKS

Adjusted basis of like-kind property your gave up, net amounts paid to other party plus any exchange expenses NOT use in line 15. What is Adjusted basis?

Expert:  rakhi.v replied 3 years ago.
Dear Friend,

Again, from what I understand, it should be 80000, your adjusted basis before you bought out your sister's share.

Hope this helps.....
Warm Regards

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