Sec 1031, no form 8824 filed

Technical topics regarding tax preparation.
#1
SKCPA  
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New client. She did a 1031 exchange in 2019 (both sale and purchase). She used an intermediary and did everything by the book. The tax preparer did not file Form 8824 with the 2019 return. Can we go back and amend the 2019 return to include the form? She is selling that property now (which is why this came to our attention).
What are the options?
 

#2
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I wouldn't worry about it. Just move on and calculate the gain or loss using the basis they figured when they did the exchange.
 

#3
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ditto, for three reasons:
1. There is no duty to amend a return.
2. There is no penalty for failure to file the form.
3. The failure to report a 1031 does not change the tax consequences (i.e., filing the form is not a requirement for the deferral.)
Steve
 

#4
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I’ve had a client who did an exchange and never told me till the next year when I’m looking at property tax bills and wondering where the new property came in and where the old property went. Had it not been for the property tax deduction, I might still not know ownership had changed.

Point being, TP may not have told the preparer.
 

#5
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Easy fraud makes us less valuable.
Steve
 


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