Hi, I have read many useful posts on this forum. How ever none touches the case when the 1031 exchange innvolves properties in two states. Many of the suggestings point to rename the property and ant adding a new one for the replacement property. However this will mix up the rental income and referred gain for the prior and new state tax report. I have the following questions:
1. How to start the TT return process. (a) start from setting up the form 8824, or (b) start from the retal income?
2. For the old property do I choose of full year rental (even though it is not true) or partial? for the new property, do I start a new rental entry and put the starting date? Will this have the risk of double reporting of my rental income /loass.
3. Where do I enter the costs of 1031 exchange (fees and commissions) ? On the old property side or the new propety side. I understand the exchange process defers the gain, so all the expenses should be carried on the new property side for future calculation of the net gain/loss when I sell the property.
4. How to move the basis of old property depression record to the new one?
I am sure that I will have more follow on questions after seeing the responses. Thanks in advance for your help
YungC
4. Since my sale gain of the old property was deferred, do I need to report the transaction to the state of the old property?
