I sold a rental house in September of 2021 and anticipated a like-kind exchange by March of 2022. However, the like-kind exchange failed. I believe I need to report the sale on my 2021 tax return, say there was a like kind exchange and use the installment method. I also believe that I can defer the capital gain until 2022 tax year, but need to pay the Depreciation Recapture Tax in 2021 tax year.
This leads me to two questions:
1 - How do I have TT determine the tax due on the Depreciation Recapture, even though there was no official "gain" during 2021. It is currently not calculating any tax due for depreciation recapture.
2 - For the like-kind exchange, TT is asking for details about the different property received: Fair Market Value of property received, promissory note received or cash received. Because the exchange failed, I received none of these. TT won't let me continue with any like-kind data entry as its says my values must add up to my gain from sold property, etc . How do I "continue?"
