1031 Like Kind: Depreciation & Amortization Report - Adding current depreciation year

[candycanepanda]

Howdy, I sold my house using a 1031 and found like kind.

On the 1031 form it wants the adjusted basis

In the adjusted basis I SUBTRACT all deprecation ever claimed on the house 

In my Form 4562 Depreciation Report, I have my previous year deprecation and current year 

I am asking here, do I calcaulate ALL of "Current Depreciation" for this year, part of it, or none of it? 
Let's say I sold my house in February 1, 2021 for example, one month into the calendar year.

I don't want to overcount my depreciation from this year accidentally as it adds another $5000 or so to the adjusted basis.  

[Anonymous_]

You should probably clarify this transaction.

Did you do a proper exchange or did sell your property first and then, later find another to purchase?

Typically, 1031 exchanges are handled through intermediaries. 

[candycanepanda]

Hi @Anonymous_ yes I used a QI.  

[Anonymous_]

Then start entering your exchange in the Sale of Business Property section.

[Anonymous_]

You also count all of the depreciation deductions you took, or could have taken, on the relinquished property.

[candycanepanda]

Thanks @Anonymous_ I am already in that section and almost done.

My questions specifically is regarding deductions from the SOLD property that occured in 2021.

Do I count ALL of 2021 deducations against my adjusted basis?

I'm wondering if possibly I do not, in case turbo tax somehow knows that I sold the subject property, and that it is not counting those deductions for me since it was sold.  

[Anonymous_ · Accepted solution]

Count all of your depreciation because TurboTax will take the deduction for you on Schedule E in the program.