I believe your instructions are while on the step by step. However i do ever see the screen u show at end titled “Are Any Other Property Sales” I usually just go to forms to fill out. The first item on that is to Elect Outof REGS Under SEC 1.168(i)-6(i)
Yes - you treat replacement property as a single asset
No - you split replacement asset into Exchanged Basis and an Excess Basis
Putting in sales info creates gains and losses on TT. Your idea helps by not putting in sales info since TT does not ask about a exchange so it auto calc the gains and losses. I think one elects “No” above, then fills out 1031 Exchange form 8824, gets total basis of like kind property, depreciation like you noted just for info and thats all, then add any Excess Basis as an asset to the rental that was relinguished, change the title to the new asset. Combine rent income and expenses of the relinguished and replacement properties on the renamed rental property.
Dont know why TT cant program this exchange to be a simple check “Like Kind Exchange” get info to create new replacement property and requished property finishes current year and is not transferred the next year and any deferred losses are transferred to Replacement Property
Mike
