Thanks for your response. Yes, the holder of the proceeds from the sale is a qualified 1031 intermediary.
I am not sure how to calculate the cost basis of the new property while it is still under construction. Can I use the purchase price of the new construction + construction loan expenses as the cost basis for 2021 taxes, even though the construction is not yet complete and add it as a new rental property in TT?
Here are the rough numbers:
Depreciated Basis of the Relinquished property : 200k
Sale Price: 340k
Closing Costs: 20k
The purchase price of the new construction: 800k
Construction loan closing costs: 20k
Total cost basis of new property: 820k
My understanding is that I should add 820k - 320k + 200k (Depreciated basis) = 700k as the new cost basis for the new property.
Should I follow the steps from https://ttlc.intuit.com/community/taxes/discussion/1031-exchange-for-rental-property-end-to-end-ques... and add the new property in TT?
Thanks a lot for your help!
