I am encountering the same issue with TurboTax Home & Business for 2022, and the response you gave doesn't seem to answer the question. If one assumes the sales price of the property given up as the FMV for the property given up and the purchase price of the replacement property as it's FMV one gets the error message described above. Apparently TurboTax is ignoring the sales & closing costs when deciding that when the replacement FMV is less than the property given up FMV resulted in some excess cash floating around. Is TurboTax assuming that the actual proceeds (sales price less commission & closing costs) are the FMV?
