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Client has1031 deferred gain from years ago. Its time to covert (recognize) the deferred gain to retained earnings. What form is used to convert the deferred gain?

raheadrick51
Level 2
 
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TaxMonkey
Level 8

What even has triggered this?

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4 Comments 4
TaxMonkey
Level 8

What even has triggered this?

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raheadrick51
Level 2
The time period to hold the deferred gain has passed. The gain should not be taxed due to the deferred gain being held (by not selling the 1031 property) the required period of time. Now, it seems to me, the gain needs to be recognized (e.g. added to shareholder basis).
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TaxGuyBill
Level 15
What time period?  The deferred gain doesn't just expire.
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TaxMonkey
Level 8
What time period are you using to defer gains?  Are you perhaps talking about a 1033 exchange?
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