@Anonymous_ The mortgage isn't asked for on form 8824 but it IS the cash I added so the numbers should reflect it.
In TT on Form 8824 it has little worksheets between the actual form lines.
Summary Worksheet:
A is FMV of property received = 552500 entered
G is FMV of given up = 233000 entered
M is "cash given" = 319500 calculated by simple subtraction and should be my mortgage (~338k) less all closing costs.
O is basis of property given up = 53167 entered
Line 15 Worksheet:
F flowed from M above, H is same value via calculation
K is exchange expenses = 15553 entered (not all closing costs are allowable)
Line 16 & 17 are the first form fields with a value and is the FMV recv = 552500 calculated
Line 18 Worksheet, everything just flows or calculates above #s. It just sums up the 53167 basis + 15553 exch exp + 319500 cash given = 388220 calculated which ends up in line 18.
Line 19 is the FMV 552500 - Line 18 = 164280 calculated realized gain.
Line 24 same as Line 19 = 164280
Line 25 same as Line 18 = 388220
So, all the numbers check out as entered and mathematically on the form.
My problem is that
53167 given basis + 337837 mortgage + ~200 cash at closing = 391200
is ~3k higher. Maybe that is the closing costs not allowable on this form ... guess I forgot the closing costs were already covered by the mortgage, ergo I this form is correct.
So I assume that means the answer to my first question in OP is I use the Line 25 number as my starting basis.
@RobertB4444 I entered the major furniture purchases on the assets so they are being depreciated. So all those other expenses of acquisition and getting ready to rent don't get entered anywhere in TT now, they just add to my basis waiting for a future time when I sell the property? I.e they aren't factored into the basis for the house at all.
So calculating the basis to use for the house only is my final problem, but it depends on how the total basis is split over the properties.
What is this 90/10 rule, can you give a link?
