@Anonymous_
I just finished my taxes but not sure if these calculations are correct.
The property I relinquished in the like-kind exchange is being reported in form 4797, "Sale of Business Property".
There are two entries for the same property that was relinquished:
2392 Taproot Court 02/01/2010 05/08/2019 0. 34,308. 102,000. -30,831.
2392 Taproot Court Land 02/01/2010 05/08/2019 0. 0, 98,000. -44,636.
I see that the two entries amount to the improvements and the current list of depreciating assets. The second entry is the land amount, when I purchased the property.
The gross sales price is set to 0 for both.
Turbo tax is also reporting the same property to have a passive activity loss fo 180k in the passive activity loss worksheet when I only reported a loss of around 15k on my schedule E for the same property.
How are the depreciating assets calculated in the sale of a property that is relinquished in a like-kind exchange? This is giving me a huge tax boost to see this negative number as it is offseting my rental income gains. Is this expected? I just don't want to deal with the IRS later on, if this is invalid.
Thanks
