First, you don't want to mark the original property as sold if you did a 1031 exchange. The point of a like kind exchange is that you can defer gain and the new property is treated exactly like the old property given up, with the exception of the additional buy-up or cash paid.
The property received is the same cost basis (not selling price) of the old property. You can add to that only if you paid additional money for the new property above and beyond the cost basis (less all prior depreciation) of the property given up. Once you have the cost basis of the old property and the additional cash buy up for the new four properties then you can determine the cost basis for each of the new properties. It would be two assets for each new building:
- The appropriate portion of the old rental - retains the same date acquired and prior depreciation as the original building
- The appropriate portion of the additional cash paid - new asset, depreciation begins in 2022
- You can use value or square feet to apportion the two amounts for each new rental buildings
Please update if you need further assistance and one of our tax experts can help.
@Jaegerml
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