Hi Tom,
I am ran into this issue for 2021. This is a complicated tax area, but I think Turbo Tax has it correct.
In this case, the reason you are running into a problem is because TurboTax is comparing the equity of the relinquished property with the equity of the replacement property; a reduction in equity is considered "boot" and is taxable.
In your example, the equity she had in the relinquished property was $57,804 and the equity she has in the new property is $43,000. The difference of $14,804 is the amount TurboTax is requiring to be added as some type of cash or property receipt. This is the amount of boot she received and should be entered as cash received. Much of this was probably spent on various exchange expenses (realtor commission, etc.) which are entered later and will offset the amount of boot.
My suggestion is to enter the $14,804 as cash received and her exchange expenses should reduce any additional taxes owed.
James
