Asset Entry Worksheet excess basis line 60 for like-kind exchange

[yarkn76]

Should the value in line 60 of the asset entry worksheet be equal to the value in form 8824 Excess Basis Replacement Prop, or are they unrelated?

Asset Entry Worksheet

Form 8824

[MarilynG]

Most elect to set up the Replacement Property as a new asset with a Cost basis of the new property = cost of new property - deferred gain from original property so there's no need to track Excess Basis as there was in years past as a separate asset, along with continuing depreciation on the exchanged asset (making three assets to depreciate). 

TurboTax uses the 'New Asset' (simplest) method, so the Cost Basis for your Replacement Property is $88,672 and there is no entry needed for Excess Basis on the Asset Entry Worksheet. 

This is indicated by the X on Line 58 to 'elect out of Regs under Sec 1.'

Click this link for more info on Excess Basis. 

[yarkn76]

Thanks @MarilynG What was causing confusion with all of this was I was being asked if I had contributed cash to this partial exchange (see attached photo) which should be excess basis.  I did contribute cash, but not above and beyond the loan value that was not replaced on the replacement property (thus I had a partial exchange) and is why I had no excess basis in the 1031 form 8824.  Regardless, TT could have pointed me to the 8824 form and indicated that the excess basis (if there was one) was less than or equal to the section in the 8824 excess basis area.  

The wording in the help leaves much to be desired regarding "above and beyond any other costs".  Furthermore, if I took out a lesser loan than what was on the relinquished property, then I shouldn't report an excess basis as well (only if that loan, in my case, exceeded the value of the loan that was not replaced). Like-kind exchange reporting in TT leaves much to be desired.  I can only imagine the difficulty dealing with a reverse exchange.  These scenarios and confusion in meaning are a big time suck.    

With regard to the separation of assets - the instructions in the help are also vague and incomplete (it's like you need a help for the help), and though it may be simpler to restart the clock on the excess scenario with just one asset, there are cases where an optimized deduction can be achieved with 2 assets - one for the excess, and one for the replacement property on the relinquished property's timeline.

End the end, thanks for your reply!