The property that I sold in a 1031 Exchange included an improvement (an HVAC unit) that was a separate asset from the main structure which was purchased earlier and depreciated separately. Both are 27.5 year residential but the original purchase has been depreciated more since it was purchased earlier. I will be transferring these assets and their basis to the replacement property as the exchanged basis to continue depreciated them. Should I keep them as separate assets for the replacement property or should I combine them? Thank you in advance for your response.
