Hi CEM05,
For our calculations related to your subject matter:
1) Relinquished property side - FMV (sold price) - adjusted Basis = realized Gain
Adjusted basis = Original purchase price + improvements (this combination of values is the depreciable basis) - total depreciation taken to point of sale (closing) of relinquished property.
2) If there were no cash withdrawn, no mortgage boot, no ordinary boot, then realized Gain = deferred realized Gain.
3) Replacement property side - FMV (sold price) - deferred realized gain = new cost basis for replacement property (27.5 yrs depreciation schedule)
Hope the above helped.
DISCLAIMER - we are NEITHER TurboTax professionals NOR Tax Experts, NEITHER CPA NOR Tax Accountants. The reader is advised to consult their CPA and Tax Accountants on how to complete any IRS forms correctly.
We did not want to lose the repository function of TT for the last 22 years by turning the 2021 tax return to a CPA/Tax Accountant; so we struggled with it like all the colleagues sharing on this forum. Again, thank you all for your insights.
With kind regards,
WCT888
