To follow-up on the comments from @MaryK1101, determining the prior depreciation is important because you will need it when you begin your analysis of this 1031 exchange. For example, the analysis begins with the following:
In computing the amount of gain recognized in an exchange of multiple properties, the fair market value must be determined for each property transferred, and for each property received. Moreover, the adjusted basis must be determined for each property transferred.
Thus, based on the above, you need to determine the adjusted basis for the property you are transferring and in order to determine the adjusted basis, you need to know the depreciation.
You mentioned in your post that you will continue to research 1031 exchanges. You might consider reviewing the Treasury Regulations for 1031 exchanges, specifically this section § 1.1031(j)–1 Exchanges of multiple properties. This site is very helpful because it provides examples. Here is the link to that Treasury Regulation.
Treasury Regulations Involving Multiple Properties
The above is a long document but the section on multiple properties begins at page 92.
Cornell Law School has reproduced the same regulation and can be accessed at the below link. The Cornell site is easier to read and it contains the same information as the Treasury Regulation site.
Cornell Law School_Exchanges of Multiple Properties.
One last point, because this is a multiple property exchange, you will need to attach a statement to your return showing your calculations. Only the final numbers appear on Form 8824. In other words, you can't enter an exchange of multiple properties in TurboTax. Rather, when you have prepared your final numbers, you will go into Forms mode in TurboTax (which you can only do using TurboTax CD/download), and manually enter your numbers on Form 8824. Your completed return will need to be mailed to the IRS. When are you have completed your calculations, reach out to us again if you need further guidance.
@AnitaMargarita
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