Client   I prepared return last year had 1031 exchange No problem. This year he sold that exchange in a few short months. He had long term gains deferred last year in the exchange.

I have never had an exchange then turn around and sell it right away. Lacerte is calculating the deferred as ordinary income.

does all the deferred become short term since the new property he aquired he turned around and sold. Was trying to look it up but not sure

thx