- choose to "Elect out" "Elect Out of the Regs in IRC Sec. 1.168(i)-6" which I read to mean "treat the sum of the exchanged basis and excess basis of the replacement property as (a single) MACRS property that is placed in service at the time of replacement". If you do not elect out and have to treat it as 1 property the remaining basis of the old property gets depreciated over 27.5 years.
- enter the value from 2017's form 8824 line 25 as the (single) "Depreciable Basis" (line 52),
If you elect out: you will retain old assets with original depreciation and enter a new asset for the purchase price less land value less sales price of prop. New asset gets depreciated over 27.5 years.
Asset Entry Worksheet. Line 58 gives you the option to elect out of §1.168(i)-6.
You really want to use the desktop verision of TT to do this as it has drill down and ability to see forms. Note, most advance users only use desktop as the functionality is so much better. How to switch to desktop.
https://ttlc.intuit.com/questions/1901476-how-do-i-switch-from-turbotax-online-to-the-turbotax-softw...
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
