I believe in simplicity and an easy path for tracing. 1. Yes, dispose of the old property, since you did sell it. Enter the new property, since you bought it. The basis is whatever happened in the 1031 and prior depreciation as cited in my example above.
The new building should be depreciated in the manner that suits it, 27.5 or 39 years, rental or commercial.
2. Yes, the property should be gone for 2023. Be sure to save all your files. Turbo Tax only keeps them a while and you will need your tax records until 3 years after you sell the new building or if you do another 1031, 3 years after you sell that building. You may have this tax return a very long time!
Be sure to view all your forms and see that the old asset is disposed of with no gain while the new property is in place along with depreciation on the new basis rather than the purchase price.
View/Print:
Desktop: switch to Forms Mode
Online: You may need to go ahead and pay for the return so you can see the actual forms. To do this:
- look on the left sidebar,
- select tools
- select print center
- select pay now
- Select Print, save or preview this year's return
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