How do I report a 1031 exchange without boot? I have the whole process with form 8824 completed but it seems like I can not dispose of the asset without triggering an entry on form 4797. If I report a 'sale', which seems to be the only way I can get a truncated year in terms of depreciation on the rental property, the system will generate a gain based on the sales price. If I don't report a sale, form 4797 still populates but instead with a loss in the amount of my net basis on the relinquished property.
I figured there would be an easy solution, such as deleting form 4797, however, the system will not even allow me to do this.
To me, it seems like this is a software glitch but was not able to get any guidance from technical support so figured someone here might be able to help.
