I sold one rental property (house A) and purchased another one (House B) by a 1031 exchange. House A had some capital improvements that were still being depreciated at the time it was exchanged for House B. Turbotax has had me continuing to claim depreciation on those capital improvements even though I no longer own House A. I don't think that was correct. Since it was a 1031 exchange, can I continue to claim depreciation on improvements on House A that weren't fully depreciated at the time of the exchange for House B? If not, what should I have done in Turbotax to remove those improvements from my Form 4562? In other words, how do I tell Turbotax that those capital improvements on House A were sold with the house?
Thanks.
