I did a 1031 exchange of 1 rental property ($750, acquired 1994) for 2 rental properties in 2024 ($790k for both). I have entered the 8824 info and have a basis in the replacement property ($338K), my exchanged basis ($254 for both properties) and my excess basis ($83k for both). I have calculated the % allocation of each replacement property. I need to enter the replacement properties as 2 separate Schedule E assets for in TT desktop. And I have a question on the 8824 entries.
Prior recommendations on the forum state that the relinquished asset should be carried over to keep track of the accumulated depreciation and a separate asset for the Excess basis entered. In 2024 TT desktop, when I enter the relinquished asset, enter the exchanged basis ($124k), and check "traded in an old asset to acquire this one", a box to enter the Excess basis amount pops up. I put in the excess basis amount ($83k) and enter the asset. When I check the Asset listing, the Excess basis is not reflected, nor is it on the depreciation schedule.
Question: Where does it go?
Question: Should I add the complete Basis of the Like Kind property received ($338k from 8824, line 25) in the Asset's Cost field and also enter the excess basis ($83k) when asked? and then not enter the excess basis separately? Would I still need to track the original cost and accumulated depreciation separately for future sales or exchanges?
or,
do I enter 2 separate assets 1. the relinquished asset, check traded asset...., enter the excess basis when asked, and 2. the excess basis as a separate asset.
Finally, the instructions for 8824 say that in a multi-asset exchange, I should enter this on lines 12-15. This exchange involved only real property (1250) and cash paid to acquire the replacement properties in excess of boot. Where do I enter the explanation of the 1 relinquished property for 2 replacement properties and how they are allocated for basis?
