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Can I remove commissions from my 1031?

Personal Finance & Money Asked on February 17, 2021

In California, let’s say I sell a property for $100,000, paying a $6000 commission.

Is my 1031 exchange amount $100,000 or $94,000?

One Answer

Your basis gets bumped up to account for that commission. Report it on line 18 of IRS form 8824 as the sum of your expenses and your basis. Instructions for form 8824 are here.

Line 18. Include on line 18 the sum of:

  • The adjusted basis of the like-kind property you gave up;
  • Exchange expenses ...
  • ...

Answered by Orange Coast- reinstate Monica on February 17, 2021

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