Yes, I have made sure that I did not own both properties at the same time, and I did use an intermediary on both sides of the transaction. And I went back, and checked what you suggested.....I jumped to the 1031 exchange in TT, and said "yes" to the question. I filled out the data for the 8824. At the end of the Exchange screens, the gain does show up as a deferred gain. But the entire gain is still showing up in TT as a taxable capital gain under business income, and the tax bill is huge. And that is not right! So there must be a flag or a switch somewhere in here that I've missed. The gain is showing up on Schedule D, the 4797, Any thoughts on what I can do next?
