I sold a rental property in 2023 which was purchased in 1984. I purchased a new property in 2023 through a 1031 Exchange. Is this transaction reported on Form 8824 or is it considered a business transaction and reported on Form 4797?
Also, the asset sold in 2023 was fully depreciated. Therefore, the capital gain deferred was a combination of depreciation take and capital for due to the sales price being significantly higher that the remaining cost basis in the original prices. I don't see how I can elect to depreciate any of the new basis in the new property purchased? How does the election determine the in service date?
Placed in service date (FROM TURBOTAX)
If I don't make the election, the placed in service date for each depreciation schedule also remains the same? If I make the election, the placed in service date resets to the date I acquired the replacement property?
