Thank you, Yes I read those articles. The only question I have is re: the like-kind property received and the date I use on Sch. E / Form 4562 (Asset Entry Worksheet) line 2 & 3 on worksheet. I was instructed to do the following by Employee Tax Expert @DianeW777:
- Go back to your rental activity and then enter the new assets with the exact same information as the property given up with a new name, but with the same date placed in service as the old property, for all assets that are part of the exchange.
- Enter a new asset for any buy up/added cash in the exchange including the purchase/selling expenses you paid in the trade. The new asset will begin depreciation on the completion date of the trade/like kind exchange.
In summary, as I understand, the new asset now bears the same date placed in service as the relinquished property, which was originally acquired AND placed in serviced on 10/04/2005. The acquired date for the new asset on Sch. E / Form 4562 Asset Entry Worksheet uses the same date placed in service as the old property. This now allows previous depreciation on line 10.
Can you confirm this is accurate? (see below)
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