In the rent and royalty section - when the sale of property is entered (sale price $2,000,000 less adjusted basis of $475,000) there is a capital gain of $1,525,000 and tax of $335,000. In the sale of the business property section - the like kind exchange information is recorded (the 4 properties purchased total $2,100,000) for a deferred gain of approx $1,528,000. If the sale isn't recorded in the rent and royalty section - a loss is generated on the sale of the property - and that is also not correct.
There should be no capital gains or loss on the sale of the property - it should all be deferred if the price of the property acquired exceeds the net selling price of the property sold - correct? But that is not what is happening mechanically based on the inputs.
