I sold a rental property in 2021 and chose to do a 1031 exchange by using the funds to build a new fourplex for rental purposes. I used a 1031 accommodator for this who had the seller amend the purchase contract to a qualified intermediary who had the funds from the sold property. The new construction is estimated to complete and available for rental in 2022.
I understand that new constructions needs to be added to Turbo Tax and Schedule E in the year they are available for the rental. Is this the case for 1031 exchanges as well? What should I do for 2021 taxes. Should I complete like-kind exchange in turbotax and have it generate 8824 form in 2021? Thanks!
