In Assets and Depreciations, select the real property and log the sales date. Log the previous depreciations for this property, you need this later. Also log the current year depreciation in next step. Total depreciation should be recaptured during 1031 exchange filing.
When questioned if a special treatment is required, select “Yes”. (Note that “like-kind” exchange is not listed as a condition for special treatment. Still, select Yes. Then entering sales price, cost basis, etc. is skipped. If No is selected, the you need to enter this information, and TurboTax will calculate capital gains tax based on this info and generate form 4797. Basically, “special treatment” means you need to manually override this sales info. So, select Yes here.)
When all properties are done, go to “Less Common Business Situations” and select “Sale of Business Property” (for Turbo Tax Home and Business. Premier should have similar option, too).
Select “like-kind exchanges” then follow instructions.
