Investors & landlords

With respect to Questions 1 and 2, you need to make a decision as to whether you want to elect out of the like-kind exchange rule.

 

See https://kb.drakesoftware.com/Site/Browse/10160/8824-LikeKind-Exchange (scroll down since these are instructions for professional tax software).

 

If you do not want to continue depreciating the old asset, then you would have to indicate that you removed the old asset for personal use in the program (the linking in the program does not work very well). Doing so will stop depreciation of the old property and will remove it from the program when you transfer your 2022 return into your 2023 return next year.

 

Note that simply because the property was vacant does not necessarily mean it was unavailable for rental use. Therefore, if the property was vacant in January, but still available for rental, then you should so indicate.

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