AmyC
Employee Tax Expert

Deductions & credits

Yes, all deferred. You will mark that you disposed of the property. Technically, the property was not sold, but exchanged.  Do not report it as being sold, but report the dates it was taken out of service.

 

If you did an actual 1031 exchange and paid the fees, you will use form 8824 to enter the exchanged properties.

 

If you need help in determining the basis for the new properties, you can see another post of mine here.

 

Fair warning -

There are two ways to handle depreciation after a 1031. Turbo Tax only handles one method, the single schedule depreciation. It is simple, you take your new adjusted basis, begin depreciation fresh on the new property based on the type of property. The 4 new buildings could have different depreciation schedules.

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