In my opinion Turbotax does a lousy job of handling 1031 exchanges. under 1031 and the related depreciation rules. option one: continue depreciating the old property based on the remining depreciable basis over the remaining depreciable life (example depreciable basis left (cost - land - prior depreciation say 185000 over remaining depreciable life say 18.5 years meaning you have taken 9 years of depreciation (residential real estate) on the property thus depreciation for each full year should be the same as in the past. option two: treat all the capital costs as new property segregate the land cost and start depreciation anew. depreciation starts on the later of the date the replacement property was acquired or the date the old property was given up. a statement "election made under section 1.168(i)-6(l)' for each property must be attached to your return.
to use option 2 enter the date as described above to stop depreciation on the old property. no sales numbers that's why you're getting the 4797. the sales amounts are only entered on the 8824.
Turbotax does nothing in regard to telling you about this option and how to enter the info in its app. setting up the replacement property is up to you. Turbotax does not do it automatically at least not in Desktop Deluxe.
and you must link the 8824 to that specific rental propety .
