I am following the procedure described in the Turbotax article below for a 1031 Exchange of one rental house (building and land) into another rental house. Step 3 describes the process of creating the new asset entry worksheets but it does not mention entering a value for land on line 8 of the asset entry worksheet. I'm pretty sure the IRS would expect some of the new asset to include land since it's a house which sits on land. Would it be reasonable to allocate the land value by using the percentage of land on the tax assessors records and applying that percentage to the Exchanged (carryover) basis and the Excess (additional) basis? For example if the tax assessment is 15000 for land and 100000 total property value and the Exchange basis was 20000 and the excess basis 40000 then the land for the Exchanged basis would be 15% of 20000 = 3000 and the land for the excess basis would be 15% of 40000 = 6000? Does this sound correct? Thank you in advance for your response.
Completing a like-kind exchange in the 1040 return
https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/completing-like-kind-exchange...
