Ask A CPA - Capital Gains & Losses

Where Do I Deduct A Loss On A Like Kind Exchange Of Real Estate ?

A loss is not deductible when incurred as a like kind exchange. A loss can only be deductible if you gave up unlike property as part of the exchange. The loss would be calculated as the amount equal to the excess of the adjusted basis of the unlike property over its fair market value at the date of the exchange. The loss would be reported on IRS Form 4797.

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