@nirbhee wrote:
.....if I follow Diane directions then I am actually electing-in.
"Electing-in" is the default method per the IRS of reporting relinquished and replacement properties. The relinquished property continues on the same depreciation schedule while the "buy-up" is treated as a new asset (so you have two, essentially).
It is simple to determine if you elected out as you will only have one asset going forward after the exchange with the basis in the replacement property being a rollover plus any 1031 adjustment.
