@AmyC Thank you for the nth time !!
Yes, I did use an intermediary 1031 agent for the exchange.
I apologize, I realized I had the land part incorrect.
A follow on ques (In case you are still around to tolerate me :), else is cool too!!)
Using your example, cost basis for new property B is $200,000.
My "new property" is a DST, I own a small percentage of a multi-family complex, lets say 0.2%.
In their balance sheet of DST, they have classification of assets listed, as an example :
PROPERTY PLANT AND EQUIPMENT
Land 3,800,000.00
Building 46,000,000.00
Building Improvements - Other 71,000.00
Building Improvements - Other CM 3,000.00
Real Property (5 Year) 10,000,000.00
Real Property (15 Year) 3,000,000.00
1) Do I depreciate new basis of $200,000 by itself without any more complexity, and completely ignoring above ?
2) Or do I need to calculate land (0.2% of land value) and similarly segregate all of these (multiplying each by 0.2%).
For simplicity I would do 1) if its not the wrong thing to do.
After going through numerous articles and irs publication only info for DST I could find was :
"Since the deduction for depreciation is based on each individual owner’s tax basis because of the deferral of gain under the Sec. 1031 exchange, the DST does not provide depreciation deductible by the DST owners. The DST may, however, provide the percentage of the classification of assets for depreciation purposes such as land, building, land improvements and personal property".
It would appear to me that 1) is the way to go.
