I seem to be having a similar problem with TT BUsiness 2016, I did a 1031 exchange 12/16 -> 1/17, but when I enter it in the "Rental Real Estate Income and Expense" step-by-step page, I am still getting a K-1 line 10 gain and a Form 4797 is getting generated and I can't seem to delete it. I tried going through with the "About your business" / Rental real estate property summary / Confirm property information page with rental property sold or otherwise disposed checked and un-checked, it did not matter.
Hope someone can see this and help out.
