Hello DianeW777,
thank you so much for your reply, it makes sense to do the two-schedule depreciation this way. I guess I’m only struggling about the double counting of depreciation if I take it for both the relinquished property and the replacement property for the same period of time. Should I not take the depreciation at all for the relinquished property this year? This way, at least I’m not doubling for the period I held the old property. There is still one issue, I gave up the old property on 5/21, and acquired the new one on 6/29. If I take the whole year depreciation for the old property, how do I deduct the period when I didn’t have either property? Also, for the calculation of adjusted basis of old property, should I include what would have been the depreciation amount for the old property for the period of time I had the property (1/1 to 5/21)? Lastly, the additional cash or fund paid in the exchange, I calculated as FMV of new property + exchange cost - FMV of the relinquished property. Is this correct? Thanks again!
