Still confusing. Sold one property and purchased 4 new ones. Treated the old property as sold and TT is showing a capital loss on the property sold or exchanged.
Sold for $2,000,000 less $100,000 of expenses - net $1,900,000. Adjusted basis of this property - original cost $500,000 (bldg $425,000 and land $75,000) less depreciation of $125,000 leaves an adjusted basis of $375,000. SP of $1,900,000 less adjusted basis of $375,000 is the deferred gain - per the 8824 form.
Entered all of the new properties at their cost #1 $750,000, #2 $750,000, #3 325,000 #4 for $275,000 for a total of $2,100,000 cost vs $1,900,000 net selling price. Entered each of the new properties in the rental section and indicated they were not purchased but part of a like kind exchange.
However, if I don't put the selling price of the old asset in the sale of the business property section - TT shows a capital loss on the sale of the land and a portion of the property and then hits the return with passive losses. This loss should not show up and I don't know how to fix.
I want the old asset off the books or to stop depreciating - how can I make this happen? And I need the 4 properties listed separately for future years. Is the basis of the new properties supposed to equal the deferred gain?
The instructions above appear to be what was done but the numbers don't work.
