You want to mark that you stopped renting out the property, not sold it. One way is to mark that you converted it to personal use just to get the depreciation to stop and let the program know it is no longer a rental.
The depreciation will go on the 8824. With 4 properties, you will have to prorate the gain among the 4 properties based on their individual value compared to the total of the 4.
The basis of the new properties includes the deferred gain along with the purchase price.
I am going to assume Property 1 and 2 were both purchased for $750,000. Each property 1 & 2, is $750,000/$2,100,000 or 35.7% of the amount spent.
The deferred basis for each property would be the old basis of $1,525,000 x 37.5% = $571,875 each. So property 1 would have a basis of $750,000 + $571,875. Property 2 would be the same.
Property 3 & 4 will need their percentage of the new properties calculated and then use that to determine the deferred basis for each.
Be sure to depreciate each property according to its type, rental or commercial.
Reference: Real Estate Tax Center| IRS
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