I am filing taxes with a 1031 exchange. I have completed the data entry and a 8824 was created. The basis on the received property was reduced by the gain from the relinquished property as it should be. However the depreciation taken for the received property is calculated using the original basis of the received property - not the reduced amount. How can I adjust the basis and depreciation for this year and ensure the lower basis carries forward to future years?
