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Deductions & credits
Thanks again for the follow up.
To clarify an earlier point in your post, the FMV of property received should equal the FMV of property relinquished. As you have outlined in the facts, there is a difference in FMV of property values of $9K which should have been made up with a cash difference by the seller as their property that you received in the exchange has a lower FMV than the property you gave up. The selling expenses are accounted for separately and, if used to pay exchange expenses, will not result in boot or taxable gain and can be ignored. Some of these numbers should therefore be revisted.
Regarding your question on opting out of multi-property depreciation treatment under Sec 1.138(i)-6(i), yes you would scroll down to a checkbox in forms mode to select that you want to make this election. I am attaching a screen shot from another post to help you locate it in the asset input section of the new property here.
Keep in mind however the bifurcated depreciation treatment involve cases of EXCESS basis of the replacement property. In other words, you've traded UP in a 1031 exchange with additional cash or loans etc. and not down by getting a replacement property that is less in FMV than the original property. (Per your facts above, it appears you traded down and further investigation is required.) Therefore, depreciation deductions for the excess basis are determined by using the applicable recovery period, depreciation method and convention prescribed under section 168 for the property at the time of replacement. The original carry over basis is depreciated using the original conventions. Or you can elect out of the regulations and treat the replacement asset as a new asset. The election out pathway may result in lower depreciation deductions but for a longer period of time.