Thank you. I mentioned it that way before, but I think if I follow Diane directions then I am actually electing-in.
From her instructions -
"Go back to your rental activity and then enter the new assets with the exact same information as the property given up with a new name, but with the same date placed in service as the old property, for all assets that are part of the exchange."
"Enter a new asset for any buy up/added cash in the exchange including the purchase/selling expenses you paid in the trade. The new asset will begin depreciation on the completion date of the trade/like kind exchange."
For example, if value of old property was 200k and I have already claimed depreciation of 50k, carryover basis of 150k would be depreciated with the same date placed in service as the old property (as mentioned above).
If I added extra 5k for the purchase of new property, this excess basis would deprecate starting the date of exchange. I think separating deprecitation this way would be electing-in.
If I were to depreciate 150k + 5k (carryover basis + excess basis) like I disposed of the old property, and depreciate 155k starting date of exchange then I believe that would be election-out.
I don't think Diane instructions do this way, and I wouldn't know how to do election-out in TT.
I could be wrong though.
