You can generate Form 8824, Like-Kind Exchanges (also known as section 1031 exchanges) from the Depreciation screen or the Schedule D/4797/etc. screen in ProConnect Tax. These steps will walk you through entering like-kind exchanges in the Depreciation screen, including instructions on creating new assets.
If the like-kind assets aren't being depreciated, refer to this article for instructions on entering like-kind exchanges in the Schedule D screen.
Where to find the depreciation screen in each return type:
- Individual: Deductions > Depreciation
- Partnership: Ordinary Income > Depreciation (4562)
- S-Corporate: Ordinary Income > Depreciation (4562)
- Corporate: Deductions > Depreciation
- Fiduciary: Deductions > Depreciation
- Exempt organization: Expenses > Depreciation
Follow these steps to generate Form 8824 from the Depreciation screen:
- Go to the Depreciation screen.
- In the Quick Entry grid, locate the asset that was given up in a like-kind exchange.
- Click the blue Details button to expand.
- Click the three dots at the top of the screen and select Disposition.
- Locate the General Disposition Information section.
- Enter the Date sold, disposed, or retired (MANDATORY).
- Enter any Expenses of sale or exchange incurred.
- Scroll down to the Like-Kind Exchanges (8824) section.
- In the Property Received subsection, enter the following fields:
- Date property identified
- Date property received
- FMV of like-kind property
- Enter any Cash and Loan Amounts or Other Property Given (not like-kind), if applicable.
- Click the method you would like to use to create new assets below to continue.