You don't have to enter the reduction of the basis of the new replacement property anywhere. Just enter your new basis on the return where you first depreciate the property.
Your basis in the replacement property is reduced by the gain postponed. You calculate the gain realized on the involuntary conversion using the IRC Section 1033(a)(2)(A) worksheet in TurboTax desktop Forms mode. (Or you can use IRS Publication 544). Then you subtract that from the cost of the replacement property to get your new basis.
@toddrub46
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