Thanks for this clarification. I will actually be selling the home in 2019 for a loss (ouch!) versus the adjusted cost basis after the Exchange, some years back. I have a lot of depreciation accumulated from the exchanged property and quite a bit from the "received" rental. From your final comment, I suspect that TT will calculate the entire amount of depreciation, from both properties, against the lowered adjusted cost basis, thus creating a paper gain, despite loosing money on the upcoming sale on the "received" property ? Just checking to see if I understand the final accounting on this albatross! Thanks again.
