I agree ... the passive loss you have on the old property transfers to the new property in a 1031 exchange ... it cannot cover the cap gain you may have in the exchange although boot is usually added to the cost basis of the new property. Seek professional assistance on this return ... upgrade to the LIVE option if you are using the online program. Best to pay a few $$ now to get this done correctly rather than pay much more later trying to correct an error.
