You cannot enter a multiple property exchange in TurboTax using the method you describe in your post. In a typical 1031 exchange where one property is exchanged for another property, TurboTax will prepare Form 8824, Like-Kind Exchanges, and lines 12 - 18 will reflect, among other things, the realized gain, recognized gain, the fair market value (fmv) of the property you received, and your adjusted basis in the property you transferred. However, in a multi property exchange, lines 12 - 18 are not completed. Rather, you must attach your own statement showing how you calculated the realized and recognized gain and enter the correct amount on lines 19 through 25. (Note: the realized gain is the difference between your adjusted basis and the fmv of the property. The recognized gain is that portion, if any, of the realized gain that is taxable)
Regarding the basis in your replacement property, the Treasury Regulations for like-kind exchanges generally provide that the aggregate basis of properties received is the aggregate adjusted basis of the properties transferred by the taxpayer, increased by the amount of gain recognized by the taxpayer, and increased by the amount if any, of excess liabilities assumed by the taxpayer.
In order to enter a multiple property exchange in TurboTax you will need to use the desktop version of TurboTax or the download version because the entries you will make on lines 19 through 25 have to be manual entries. Manual entries are effected by selecting Forms mode, upper right of your screen, and from the list of forms in the left margin, select Form 8824. If you don't see Form 8824 in your list of forms, then select Open Form and in the search window enter Form 8824, then select Open Form again. When Form 8824 is open, double-clicking in various fields will allow you to enter information.
A helpful resource with like-kind exchanges of this type is the Cornell Law School website, the link to same is below. The Cornell site is a copy of the Treasury Regulation relating to like-kind exchanges.
Cornell Law School_Exchanges of Multiple Properties.
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