Hi @Anonymous_
I just finished my taxes and saw that my passive activity loss (Form 8582) for the same property that was relinquished to be rather high. I did have a loss for this property for this year but it was much less. I'm assuming TurboTax is somehow calculating more losses based on the depreciating assets/bonus depreciations I've entered for the property.
On form 4797, it lists two entries concerning the property that was relinquished. The first entry is the bonus depreciations(e) + the initial improvement value(f). The second entry is the initial land value(f). Both entries have a gross sales price(d) of 0. However, line 7 total only matches the total rent income (line 26) of my schedule e, which is the income from all my rental properties.
Basically, turbo tax is reducing my passive activity income to 0 because of this relinquished property. Is that correct? How should the bonus depreciation and property depreciation be calculated in a like-kind exchange?
Thanks
