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Let's take this one step at a time. First, there's not a choice to begin new depreciation or placed in service date for any asset from the original property traded. 

1. Even if you choose to enter new assets under the new received property in the trade the can be renamed however they will be the same assets, date placed in service, cost, etc.
   • Any new assets would be the 'boot' or what is called the 'buy-up' costs.  This asset is money paid in addition to the property given up and begins depreciation on the traded date.
   • This can include any cost you had to pay including acquisition costs.
   • Placed in service remains the same for any asset on depreciation immediately before the trade, any buy-up begins on the trade date.
   • The state return differences is one reason why my want to enter the assets exactly as they were on the original property even if you do choose to re-enter each asset with a new name/location.
   • Deferred gain is taxed later which is why the assets must remain in tact and ready for a future sale to capture this when there is not a trade or a trade that can have taxable consequences such as a trade where unlike property could be in the mix. 
   • Land remains the same - the deferred capital gain is factored into any increase in value, which is why it is a tax deferred exchange.

Depreciation Rules:

The basic concept of a 1031 exchange is that the basis of your Old Property rolls over to your New Property. In other words, if you sold your Old Property for $100,000, and bought your New Property for the same, your basis on the New Property would be the same. It makes sense then that your depreciation schedule would be exactly the same, and does not change! In other words, you continue your depreciation calculations as if you still own the Old Property (your acquisition date, cost, previous depreciation taken, and remaining un-depreciated basis remain the same).

If you choose to enter the assets under a new rental property to allow for the changes to location you can use the steps below.

For the property given up (property A), you can indicate the following:

1. First use the Search (upper right) > Type rentals > Press enter > Click on the Jump to... link
2. Or Wages & Income > Rental Properties and Royalties > Update > Continue to Rental and Royalty Summary > Edit the property
3. Scroll to Assets/Depreciation  > Click Update > Select 'Edit' next to each asset
4. Edit beside each asset > Continue to the Tell Us About This Rental Asset
5. Select the checkbox beside 'This item was sold, retired, .... traded in ....etc. > enter the date it was traded (sold/retired)
6. Answer the question about whether it was 100% business > Leave the original date it was placed in service (may be purchase date or later depending on your circumstances)
7. Continue to the screen 'Confirm Your Prior Depreciation'  
   • The amount displayed is only for prior years and does not include the current year. 
   • Continue until you see the current year amount displayed and make a note to add the two amounts together for the Section 1031 like kind exchange.
   • This completes the asset portion of the trade.
8. Answer 'Yes' to Special Handling
9. Assumed that Form 8824 is already completed
10. Enter the new property as indicated in the bullets above.

@cparke3