Federal Income Tax I

2020 tax return

How can I enter the following data into Proconnect Intuit Software ? It is property exchange

1 At a mortgage foreclosure auction held on February 4, 2007, Tony acquired an abandoned sugarcane farm near Magnolia, known as La Beaux Place, for $30,000. Due to the current expansion trend in nearby Houston, he regarded the purchase a good investment. Early in 2020, a Houston real estate developer offered Tony $250,000 for La Beaux Place. To realize a large taxable gain, Tony arranged for a property swap by written notice on May 10. In exchange for several vacant lots on Padre Island (TX) worth $240,000 and cash of $10,000, Tony transferred La Beaux Place to the developer. The exchange took place on June 20, 2020.

2. Tony purchased unimproved land near Beaumont (TX) for $18,200 at an auction held on April 17, 1994. Described as Block 46, the property was adjacent to a modest prison rice farm owned by the Texas Department of Corrections (TDC). Tony bought the property based on a hunch that the TDC might someday wish to expand its Beaumont prison facility. In late 2019, the TDC offered him $160,000 for Block 46. Tony countered with a selling price of $225,000. After prolonged negotiations, Tony and the TDC could not come to a mutually agreeable selling price. The TDC then threatened to condemn Block 46. After repeated threats of condemnation, Tony transferred the property to the TDC on June 28, 2020, for $180,000. On December 17, 2020, Tony reinvested $175,000 in vacant land located near Texas State University in San Marcos. Tony spent the remaining $5,000 on a vacation to Hawaii with Kayla in early 2021.