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.
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.
Then start entering your exchange in the Sale of Business Property section.
You also count all of the depreciation deductions you took, or could have taken, on the relinquished property.
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.