I ran into this exact same trap, and had both 8824 and 4797 created, as well as a taxable capital gain.
Tried to delete the 4797 forms but wasn't able to (TT confirmed deletion, but forms were still there).
Finally figured out a way around:
- Go to the relinquished property, choose YES on the "Did You Stop Using This Asset" page
- Fill out the dates for "Date of Sale or Disposition"
- On the "Sales Information" page, leave all 4 boxes blank (Asset/Land Price/Expenses)
Now TT will correctly calculate the depreciation for the relinquished property, and does not generate a 4797.
Of course, you'll still need to go through the other place to create 8824 form, and also add in the replacement property.
Version that I'm using: 2022 online version
