I have a summer beach rental that I have just 1031 exchanged in October. Since the property only rents in the summer, if I create schedule Es for both the relinquished and replacement properties, Turbo Tax tells me to delete the replacement property schedule E since there will be no days rented in this tax year. A side product of this is that any 2020 expenses associated with the replacement property, taxes, HOA fees, etc. cannot be claimed and the replacement property gets classified as a
In 2005, When I acquired the property I just exchanged in 2020, it was done as part of a 1031 exchange.. When I look at the schedule E that was filed in 2005, my professional tax preparer only used column A on the schedule E and combined the expenses from both of my relinquished and replacement properties. This approach enabled me to claim all the expenses in 2005 from both properties even though one of them had zero rental days/income in 2005. Would the IRS still accept this approach in 2020 or have the tax laws changed such that I'm required to enter both properties separately in column A and column B on my schedule E which is what Turbo Tax encourages me to do?
