In a Like-Kind Exchange of rental residential properties, I sold/gave up a property in Dec 2016 and bought a replacement property in Jan 2017. I documented this exchange in my 2016 tax return, using Form 8824 (via Turbotax Premier).
For my 2017 tax return, I'm adding - for the first time - the replacement property, as a rental asset and a generator of rental income. Going through the Turbotax step-by-step interview (fills out the Asset Entry Worksheet), under "Tell us more about this rental asset," I checked the box "I traded in an old asset to acquire this one." In doing so, the "Excess Basis Amount" box appears, and I entered the additional money I borrowed (new mortgage amount of $245,000) to purchase the replacement property. (Replacement property cost more than relinquished property.)
These choices appear to have Turbotax generate a "Depreciable Basis" for my replacement property (Form 4562, Depreciation and Amortization Report, 2017 tax return in-work) that does not take into consideration the 1031 Exchange. The Depreciable Basis for my replacement property DOES NOT EQUAL the "Basis of like-kind property received," Form 8824, line 25, from my 2016 tax return. This seems incorrect. Why does TT seem to not ask about or link to my 2016 tax return, Form 8824 information? These two amounts are not even close.
Should the "Depreciable Basis" for my replacement property EQUAL the "Basis of like-kind property received," Form 8824, line 25, from my 2016 tax return?
If so, how do I get TT Premier to input the correct information?
I added 2 screen shots of these sections in Turbotax Premier.
