A finished ACC-683 Topic 8 plan-to-return reconciliation example, finding $60,000 of boot in a like-kind exchange the plan called fully deferred, correcting both documents and carrying the gain to partners. Searches like "acc 683 topic 8 assignment example", "acc683 topic 8 sample" and "acc-683 topic 8 example" land here.
What a finished ACC-683 Topic 8 plan-to-return reconciliation looks like
The finished reconciliation lays the two documents side by side, with every amount a composite. The plan said an LLC owned by two cousins would exchange a warehouse with a $700,000 adjusted basis, sold for a net $1,500,000, for replacement property costing at least as much, and defer the whole $800,000 gain under section 1031. The replacement closed at $1,440,000, and the intermediary released $60,000 to the LLC for a roof deposit. Section 1031(b) recognizes gain up to the boot received, so the return reports $60,000 on Form 8824, not zero. The replacement's basis stays $700,000 under section 1031(d), and $740,000 remains deferred. Because depreciation already taken exceeds the recognized amount, the partners receive it as section 1231 gain that is all unrecaptured section 1250 gain, $30,000 each.
How an ACC-683 Topic 8 example is structured
Two columns, plan and return, organize the reconciliation, with a third recording which one gives way. It opens with the claim the plan made and the documents tested against it: the intermediary agreement, both closing statements, the identification letter and the draft Form 8824. Title is checked first, since the same taxpayer must give up and receive the property, and the LLC held both deeds. Closing costs come next, separating the commission and title fees paid from exchange funds, which create no boot, from the roof deposit, which does. The gain section computes realized, recognized and deferred amounts and the replacement basis. A partner section carries the $60,000 to both K-1s and raises each outside basis. The final section revises the plan in writing, adjusts the cousins' estimated payments and records what would have kept the exchange whole.
The plan's claim quoted before testing
Full deferral of an $800,000 gain is quoted from the planning memo, so every later line is checked against a specific promise rather than a general intent.
The same taxpayer on both deeds
Because the LLC, not the cousins individually, held title to the warehouse and to the replacement, the exchange clears a requirement a change of titleholder would have broken.
Exchange costs separated from boot
Commission and title fees paid from exchange funds reduce the amount realized, while the $60,000 roof deposit is cash in the LLC's hands and recognized under section 1031(b).
Deferred gain and carried basis
Recognizing $60,000 leaves $740,000 deferred, and the replacement takes the warehouse's $700,000 basis, so depreciation continues from that figure rather than from the purchase price.
Both partners' returns brought into line
Each cousin's K-1 carries $30,000 of gain and each outside basis rises by the same amount, which the plan's projections had also omitted.
The plan corrected in writing
A short revision tells the cousins the deferral was partial, adjusts their estimated payments and notes that paying the deposit from other cash would have kept it whole.
Where marks go in ACC-683 Topic 8
Reconciliations that trust the plan and file zero gain lose the most, because the return then repeats the planning memo's error under the partnership's signature. Papers that find the $60,000 and treat the whole exchange as failed overreact, since section 1031(b) recognizes gain only to the extent of boot. Calling the commission boot along with the deposit overstates the gain. A replacement basis set at the $1,440,000 purchase price ignores section 1031(d) and would overstate depreciation for years. Credit also goes when the gain stops at the partnership and never reaches the K-1s or the partners' outside basis. The subtler omission is leaving the plan uncorrected, so the cousins keep a document saying one thing while their return says another, the very mismatch a capstone reconciliation exists to remove.
Get an ACC-683 Topic 8 example written to your instructions
Send the ACC-683 Topic 8 instructions, your rubric and the plan, closing documents or return drafts in your case. We write a custom example to them, with each planning claim tested against the filing, differences traced, both documents corrected and the effect carried to every owner, back in 24 to 48 hours. The first one is free; coursework support, not tax advice.
ACC-683 Topic 8 questions, answered
Why does $60,000 of cash not ruin the whole exchange?
Section 1031(b) provides that when an exchange would qualify except that money or other property is also received, gain is recognized, but not beyond the amount of that money and the value of the other property. The exchange remains an exchange, and the rest of the gain stays deferred. The reconciliation therefore reports $60,000 and keeps the $740,000 deferral the plan was built to protect.
Could the roof deposit have come from exchange funds without boot?
Not as it was handled. Money spent on costs of the exchange itself, such as commissions and title charges, generally reduces the amount realized. A deposit on future repairs is not a transaction cost, and releasing it to the LLC put cash in the exchanger's hands. The alternatives were paying it from the LLC's own funds or acquiring replacement property that used the full proceeds.
Does a like-kind exchange still work for equipment?
Not since the 2017 tax act, which limited section 1031 to real property not held primarily for sale, so equipment, vehicles and other personal property no longer qualify. The warehouse is real property held for rental and investment, which is why the exchange works here. The reconciliation is coursework built on composite documents, never tax advice.