1031 Exchange

Question

Good morning, 
 
 Has anyone done a 1031 Exchange disposal in sage? Just want to confirm if I should select Taxable Exchange as the disposal method. 
 
 Thanks,

Delray · Accepted Answer

Hello Juan, 
 Frist, I am not an accountant. 
 It is my understanding that a 1031 exchange is an exchange of similar properties where a Taxable Exchange is an exchange of dissimilar property. 
 So that, if this is a 1031 exchange it would be a Like-Kind Exchange, not a Taxable Exchange. 
 ~Delray

Delray · Answer

Hello Tracy, 
 The 1031 exchange (Like-kind exchange) pre-2018, I understood very well, but since then, not so much. 
 The problem here is that the rule changes since 2018 have been a bit muddled, unclear, and have changed a few more times. 
 I have had to do a bit of research (which means I had to bug an accountant), and it appears that the post 2017 rules would be that exchanges of personal property which qualified as like-kind exchanges prior to 2018 are treated as taxable exchanges in 2018 and later. 
 It now appears Property Types P, A, T, and Q which for the 1031 exchange once used the Disposal Method of Like-kind exchange are now to use the Disposal Method of Taxable Exchange. 
 ~Delray

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