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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10163
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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How do I record the 1031 transactions on the books of the

Customer Question

How do I record the 1031 transactions on the books of the company??
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am the CPa but have never done one
JA: Is there anything else important you think the Accountant should know?
Customer: Nothing special sale & purchase different dates
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi,

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My name's Lane. I can help here.

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You remove the asset (making a credit entry for it's book cost), remove the accumulated depreciation (making a debit entry for it's book amount), and creating an asset called "escrow basis" (a debit) for the difference.

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This is your tax basis in the escrow account. There's no gain or loss, of course, at this time.

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Then, when the replacement property is closed, you credit the escrow basis account, and credit cash paid and/or mortgage established, with the debit entry being your tax/book basis in the replacement property.
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THis accomplishes the 1031 objective of the deferred gain never making it to the books, with the replacement property being recorded at your historical cost basis + any cash added or borrowed for the purchase.

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Let me know if you have questions

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Lane

Customer: replied 2 months ago.
Thank you, ***** ***** try what you said.
Expert:  Lane replied 2 months ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be credited for the work here

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Thank you,

Lane

Customer: replied 2 months ago.
Can I speak with someone live?
Expert:  Lane replied 2 months ago.

I tried to accept the phone call request, but got a internal server error.

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Customer: replied 2 months ago.
I've updated the credit card information
Expert:  Lane replied 2 months ago.

I tried to accept again, and it still didn't go through ... Can you possibly check with customer service?

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I have now way of accepting the call request onmy end now.

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(We expert users ARE users just as you are - although with credentials verified. We have no way of dealing with these account type issues - In MY experience, a call or email to customer service can get the call request to show back up)

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1(###) ###-####/p>

Email | Chat | Phone

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OR we can try to handle here

Customer: replied 2 months ago.
The credit card should work now
Expert:  Lane replied 2 months ago.

Again, so sorry, you'll need to have customer service set this up so I have a way to accept the call.

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The card going through is one issue, but also I have to have the link on my end to accept, and that's no longer there.

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SO sorry

Customer: replied 2 months ago.
I've updated and spoke to customer service now
Expert:  Lane replied 2 months ago.

Just tried to accept and got "Internal Service Error" again.

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Could you tell them that?

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