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LACERTE - How do i add to basis the improvements made in year of like kind exchange?

pat
Level 5

My client made about $60,000 improvements/remodel to a rental duplex prior to relinquishing the property in a like kind exchange (LKE.) How do I enter those improvements in a way that they increase the basis of the property? These were made the same year as property exchanged - no entry for depreciation. Had they been entered as improvements Lacerte does not recognize as real property eligible for a 2019 LKE and a critical diagnostic pops up.

Thank you.

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1 Solution

Accepted Solutions
George4Tacks
Level 15

That diagnostic is just a warning and can be ignored. 


Here's wishing you many Happy Returns

View solution in original post

5 Comments 5
George4Tacks
Level 15

That diagnostic is just a warning and can be ignored. 


Here's wishing you many Happy Returns
pat
Level 5

OK. Thanks.

0 Cheers
pat
Level 5

George, I need to correct the input originally entered through the LKE wizard - is there an easy way to clear out all the changes that have been made so I can rerun the wizard with the updated numbers?

Thanks

0 Cheers
George4Tacks
Level 15
Easy way - restore your backup from just before the LKE wizard was initiated.
Short answer is NO

Here's wishing you many Happy Returns
pat
Level 5

I can't use the backup too many other things in Lacerte have changed. Short answer yikes!! Thanks George.

0 Cheers