I have a similar question regarding my 1031 exchange. Did I do this correctly?
- Line 25 of Form 8824, Basis of like-kind property received, is 505,273. This takes into account all of the depreciation and improvements of the relinquished property, as well exchange & closing expenses for both the relinquished and received propertes
- The building of the relinquished property still has 37,345 of basis to depreciate. I continue to depreciate this over its remaining life on the received property's depreciation schedule as carryover depreciation.
- The received property's building is valued at 538,629. Its Excess Basis is 538,629 less 37,345 of carryover depreciation basis from the relinquished property for a value of 501,285. I depreciate 501,285 for the received property as Excess Basis over 27.5 year on the received property's depreciation schedule. Thanks for your help!
