1031 Exchange to 3 DSTs - How to Calculate and Convert Exchange Basis, Retire Relinquished Property, and Setup Replacement Properties

I’ll first apologize to my lengthy inquiry.  However, I believe providing real information with hopefully real answers provided by tax experts will assist myself and others in understanding how to file taxes for a Relinquished vs. 2+ Replacement properties, as well as how to work with DST 1031 investments.

Relinquished Property

• 2/20/2004 = Purchase Date
• $310,000 = Purchase Price
• $248,000 Improvement / $62,000 Land
• 1/31/2022 = Sold Date
• 790,000 = Sold Price
• $125,000 = Outstanding Mortgage/Loan
• $90,000 = Calculated Exchanged Basis (Depreciation = $158,000)

Replacement Properties (3) – DSTs (using my numbers rounded as an example)

$903,000 = Total Replacement Cost

Property 1 = Oil & Gas DST

• $250,000 = Purchase Price (Equity)
• 27.7% = Percent of Total Replacement Cost = $250,000/903,000
• $24,930 = Portion $’s of Exchange Basis = 27.7% * $90,000 Exchange Basis
• $225,070 = Excess Basis = $250,000 Purchase Price - $24,930 Exchange Basis

Property 2 = Ford Distribution DST

• $493,000 = Purchase price =  $250,000 (Equity) and $243,000 (Loan)
• $54.6% = Percent of Total Replacement Cost = $493,000/903,000
• $49,140 = Portion $’s of Exchange Basis = 54.6% * $90,000 Exchange Basis
• $443,860 = Excess Basis = $493,000 Purchase Price - $49,140 Exchange Basis

Property 3 = Senior Assisted Living Facility DST

• $160,000 = Purchase price (Equity)
• 17.7% = Percent of Total Replacement Cost = $160,000/903,000
• $15,930 = Portion $’s of Exchange Basis = 17.7% * $90,000 Exchange Basis
• $144,070 = Excess Basis = $160,000 Purchase Price - $15,930 Exchange Basis

Questions:

PART-1

1. Please let me know if any of the aforementioned calculations are incorrect based on the Relinquished property and the 3 Replacement Properties.
2. Adjusted Basis (8824 Line 18)
1. $208,000 = $90,000 Exchanged Basis from Relinquished property + ($243,000 Loan of 2nd Replacement Property - $125,000 Loan from Relinquished Property)
2. Is the $208,000 the correct amount to proportion across the 3 replacement properties, or is the Exchanged Basis of $90,000 coming only from the Relinquished property the correct value?
3. How is the proportioned number entered as the basis for the 3 Replacement Properties? 
1. “Wages & Income” to “Rental Properties and Royalties” to “Assets/ Depreciation” to “Your Property Assets" to “Rental Real Estate Property” to “Nonresidential real estate” to “Tell Us About this Rental Asset”
2. If we consider the Replacement Property 2, is the “Cost” equal to the Purchase Price of the replacement property ($493,000), OR is the “Cost” equal to the proportioned Adjusted Basis number, either $90,000 or $208,000 depending on the answer above?  Or, should the proportioned Adjusted Basis number be its own additional Asset/ Depreciation line item, in which you have both the depreciation for the Replacement Property using the Purchase Price ($493,000) AND you have the proportioned Adjusted Basis as well?
3. What should be provided for the “Date purchased or acquired” – either the Purchase Date of the Replacement Property (3/16/2022) or the Purchase Date of the Relinquished Property (2/20/2004)?
4. Under, “Tell Us More About This Rental Asset”
1. Should both of these items be checked:  “I traded in an old asset to acquire this one”, and “I purchased this asset”?
2. What is the benefit of inputting the Excess Basis numbers?  It does not seem to change anything about the asset depreciation.

PART-2

1. Rental Property Expenses for the Replacement Property 2 with a loan.
1. Can all of these items be entered under “Any Miscellaneous Expenses” = Commissions, Dealer Manager Fees, Marketing & Due Diligence, Third Party Due Diligence, Acquisition Fee to TRS, Offering & Org Costs, and Deferred Financing Costs?
2. Do any of these need to be amortized, so they need to go in a different section such as “Enter Loan Information”.  I believe all of these items are up front costs to secure the property and the loan, and not yearly fees to manage the property.  So they probably should be located in the “Loan Information” section, which appears to amortize items, and not the “Any MISC Expenses” section which does not appear to amortize items.
2. Can we only provide a single 8824 form using the numbers in aggregate, or do we also HAVE to provide a worksheet that details the breakout for the 3 DST Replacement properties, and thus have to mail in our tax filings instead of Efile?  Would not providing a worksheet of the details create red flags to the IRS, thus a higher probability of being audited?
3. The DST provided a different depreciation number than what TurboTax calculated.  So should we use their number instead – as a replacement, or should I add the difference in depreciation as a new entry?
4. Do I need to figure out the price of Land for both the Ford Distribution Center and the Senior Living Center for depreciation if the Cost is replaced by the Exchanged Basis from the Relinquished Property?.  If yes, is there a general formula for Commercial properties?  The DSTs did not provide a improvement value vs. land value breakout in any of the closing documents.
5. Do we need to file taxes in each state in which the Ford Distro and Senior Living are residing?  It seems like we don’t need to do that for Peregrine (Oil & Gas).
6. How do I claim the remaining finance charges associated with the loan from the Relinquished Property ($35 & $41?) that were being amortized over the length of the loan, but now I have them as stopped using on the Assets/ Depreciation section for the Relinquished Property.
7. Do any of the 3 Replacement Properties qualify for Qualified Business Income?  I have never used Qualified Business Income for my 3 single residence properties.