Get your taxes done using TurboTax

@Husam22 

The whole process is a bit convoluted with respect to the order of doing things and the answers to the questions.  The help screens are scattered here and there, the information is not in one place.

Here's what I did using Turbotax Premier...

1. First, enter the data for the 1031 Exchange.  This is done under FEDERAL TAXES... Wages & Income... Business Items... Sale of Business Property.  The first question is on "Any Other Property Sales?".  Check the box for like-kind exchanges.  Complete the questions in this section and TurboTax will:
   1. Generate form 8824 for your like-kind exchange
   2. Calculate the Deferred Gain.  This is presented after you answer the questions for the like-kind exchange.
   3. Calculate your New Property Basis.  This is presented after it presents the Deferred Gain.  Write down the New Property Basis as you will need it later.
      
      
2. Now, enter the data for the new rental property.  This is done under FEDERAL TAXES... Rental Properties and Royalties... Rental Properties and Royalties (Sch E).
   1. Under the Property Profile, indicate this is a New property (first year you rented the property).
   2. If the property was not rented all year, indicate the number of days it was rented.
   3. When asked "How did you acquire the property?", select "I acquired this rental through a like-kind exchange."
   4. You are presented with a help screen that basically tells you to go off and do step 1 above.
   5. Complete the Rental Income, Expenses, and Vehicle Expenses sections for the rental.
   6. Complete the Assets/Depreciation section.  Add an Asset for the Rental Real Estate Property.  When you get to the Cost, enter in the Cost Basis of the new property that was calculated back in Step 1 above (you wrote that number down).
   7. When asked More About This Rental Asset, enter the date you first started using the property as a business.  This date is used to pro-rate your depreciation for the current tax year.
      
      
3. Now, enter the data for the old rental property.  This is done under FEDERAL TAXES... Rental Properties and Royalties... Rental Properties and Royalties (Sch E).
   1. Under the Property Profile, you will get to a screen that asks "Do Any of These Situations Apply to This Property?"  Now here comes the tricky part!  You and your realtor may think you sold this property, but you did not - you exchanged it.  Do not check the Sold box!!  If you click "Learn More" it will tell you not to check the box if you did a like-kind exchange.  (For my situation, I checked "None of the above".)
   2. If the property was not rented all year, indicate the number of days it was rented.  
   3. Complete the Rental Income, Expenses, and Vehicle Expenses sections for the rental.
   4. Complete the Assets/Depreciation section.  When you get to "Your Property Assets", you will need to edit each asset that is listed.
   5. For each asset listed, answer "Yes" to the question "Did you stop using this asset in 2019?"  You will be asked the date that you stop using the asset (i.e., sold it, that is exchanged it).  This date will be used to:
      • Pro-rate your depreciation for the current year (2019)
      • Deduct all remaining refinancing charges (for refinancing assets)

That should be it.

To summarize the confusion:

1. Enter the like-kind exchange information first to determine your cost basis for the new property.
2. Enter the new property information for the property you bought in the exchange.  Use the calculated cost basis from Step 1 and the date the property was put into service.
3. Enter the old property information.  Technically, the property was not sold, but exchanged.  Do not report it as being sold, but report the dates it was taken out of service.

I hope this helps.  Please let me know if it works for you.

Randy