I have a 1031 like kind exchange. Turbo tax created a Sch D and a 4797 and recognized a taxable gain. I deleted all real estate entries and tried to enter just the exchange not anything related to a sale. The forms were still created. Others said to zero out the Sch D and 4797. However the new property cost $12,000 less than the property sold so I need to recognize the $12,000 gain. But not the erroneous $128,000 gain that turbo tax created.
Separately, turbo tax recognized a full year of depreciation when I sold the property after 6 months of the year? How do I not claim depreciation expense on property sold in the same year?
