I went through all the forums on TT and could not find answer thats why posting my question.
I sold rental property A on Feb 1 and did a 1031 exchange with rental property B using an intermediary. Property A was rental for 8 years and was vacant for Jan (waiting to be sold). I was able to find how to enter like kind exchange(search and jump to like kind) and process generated 8824 correctly. The numbers look correct, it calculated new cost basis for property B correctly. In the last page it asked if I want to link it to a property and I linked it to property A.
Ques 1) Property A has been reported as a rental property on my return for last 8 years, so it already exists on my return.
How do I report the sale of property A so that TT understands it is for this exchange.
Following "Sale Of Property/Depreciation" -> "Tell us more about this rental asset" I selected "The item was sold, retired, stolen.....or given away" -> Confirm your prior depreciation -> "Special Handling required" does not include any option for like kind so clicked "No". Then it navigates to "Sale Information" with asset and land separately, and if I enter the numbers TT calculates tax on my gain which is incorrect.
What should I do for property A for TT to understand that the gain should not be taxed.
Ques 2) Property A was vacant for Jan 2022 before it was sold in Feb. I understand no deduction or depreciation can be taken for property A as a rental property for that time.
In "Property profile" -> I checked "I sold or disposed of this property in 2022" -> For "Was this property rented for All of 2022" I selected "No, this property was not rented all year". But if I select"checkbox "I did not rent..." then TT asks me to delete the property. Should I instead just add number of days as 0? In one of the older threads someone mentioned enter number of days rented as 1 so that a schedule E is generated, not sure if its still correct for 2022.
Ques 3) property A has unallowed passive losses from last year. How to transfer passive losses and remaining depreciation from property A to property B, does it have to be done manually when adding property B as a new rental property?
Thank you for any help!!
