Investors & landlords

Here are the answers to your questions:

Loan Fees:

1. In general for a 1031 Exchange, for the relinquished property, under the Property Profile section, you do NOT say that you Sold the property, because you really exchanged it.  Confirmed - Continue as though it has not been exchanged.  You can choose to divide it if you like (same date, same combined total amount even if divided)
2. However, under "Assets/ Depreciation" section for that relinquished property, I believe you DO indicate that you "Stopped Using this Asset in 2023"...and then enter in the "Date of Sale or Disposition" with the "Date Acquired" date?  Not Exactly - not sold even though you traded property.  This retains the same character. This gets a little confusing - Say it was converted to personal use, then 'yes' to special handling, then enter a new asset EXACTLY the same as indicated in number 1 above). See Notes.

Partnership LLC:

1. This is not an entry on your personal return.
2. The LLC's CPA has "Final K-1" as checked, which makes sense because the LLC is no-longer needed as the house was sold in 2023.  However, I want to confirm the choices for the sub-boxes that are in the "Describe the Partnership" section of Turbo Tax:
   1. I chose "This partnership ended in 2023" of the available choices.  Please confirm. It may be easier to select 'None' and then delete the K1 next year so there are no errors and the 1031 is handling the exchange. Then the next screen will not appear for sales information.
   2. Then it asks "Describe Partnership Disposal".  For now I checked the "No entry" box, as the sub-boxes that the other choices lead you to don't seem to apply.  The other choices took you down the path of selling your partnership interest.  Please confirm "No entry" is correct (or at least ok to select). N/A if you follow instruction in #1 above.
3. Keep them in your files.  You may need them in the future but only the K1 income, etc in Part III needs to be entered.
4.  The K1 income should carry over to the CO tax return.  Once this is entered in the federal return, you should see a section populate in the nonresident CO return to make any adjustments for the CO portion.
5. The question is not clear for me.  Keep in mind if there are capital gains, the tax calculation will be using capital gains tax rates and a worksheet to calculate the tax. Review the tax return after complete to look at the income sections to account for the K1 information.

@jamie-m-todd