@Ira2023 ,
I am amazed at how many folks are still referring to this post after so many years! I haven't done an exchange with the latest version of TT; however, I would offer this suggestion.
The original prompt of "How did you acquire the property?" seemed only to send you back to determine the cost basis for the new property. If you've already determined the basis from the first steps in my post (i.e., generated form 8824), then simply use that cost basis of the new property, rather than your actual purchase price. This is essentially what an exchange does - it takes the gains from your old property and transfers them to the new property by lowering the cost basis of the new property.
See if that works. You should always double-check the underlying forms that are eventually generated from the dialogs as well as the depreciation schedule for the new property. Those forms are what is actually submitted with your taxes.
