It seems the issue may be that although there is only 90,000 remaining balance of cost basis before the trade you may be using that actual number for the new asset, which would not provide the results you need. It's important to emphasize that all components of the original building must retain in tact. Purchase price and land at full value and original date acquired, even if split between two properties.
It should be the original basis divided by the two properties and then the accumulated depreciation listed. The asset you enter for the two buildings should be the exact same as the original entry if you add them together. I copied your information below. Although we are dealing with a balance of $90,000 you must prorate each figure to arrive at the correct depreciation (purchase price, land, date acquired). Are you using the proration against the original figures or only the $90,000 which will never work out.
As we discussed the change in recovery periods for one of the buildings requires manual tracking to eliminate excess depreciation.
You must split the $310,000, the land of $62000 to enter your original asset for each of the buildings received in the trade, with the percentages you arrived at.
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)
You're doing well in trying to understand all of this, however you might consider using a tax professional to prepare your return for this year. Hopefully this information
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