@AmyC
Good morning Amy! Thank you so, so much for your detailed response! I'm going to take a little time today to digest it.
I do have a quick question now. Based on Diane's input it seems like you can apply the 2 schedule depreciation approach because each replacement property can have 2 asset/depreciation entries in TurboTax - one for the original basis tied to the relinquished property, and one for the additional basis associated with the purchase of the replacement properties. In the Sale of Business Property section, TurboTax does show you the 2 different basis numbers.
My initial thought is that the benefit of the 2 schedule approach is that you get to depreciate the remaining original basis of the relinquished property at a faster rate - over the remainder of the 27.5 years (which is 9 years in my case), versus starting the clock over and spreading the depreciation expense over the full 27.5 years (or 39 years in the case of the Ford Distr Center). Therefore, your annual depreciation deduction is a higher amount.
Am I missing something? I'd love to hear your thoughts on that.
Thanks so much!
Jamie
@DianeW777
