I did a like-kind exchange in 2023, and reported that exchange corrected in TT in tax year 2023 e.g., filing form 8424, calculating the new asset basis etc.
For depreciation, I kept it simple by opting out the new rule so that the new property is on a new 27.5 year depreciation schedule with combined cost basis (as mentioned in option2 here https://blog.fgg1031.com/blog/how-to-calculate-depreciation-after-a-1031-exchange).
I also marked the old property as stopped using it on the date I exchanged it away (which is 2023).
I was expecting TurboTax this year should be smart enough to only keep the new property that I received in the exchange. deleting the old property. But it still has both properties.
When I first signed in for TurboTax 2024, it imported this old property (that I exchanged away in 2023), and it says "We need to keep these income items… even though we can’t remove them, don’t worry”.
But when I work on the income section, there's no income, depreciation, expense (all 0s) from this old property, which seems correct.
Should I just go ahead and delete this property? There's no error or warning whatsoever if I do this. But I jus wonder why doesn't TurboTax figure this out already that this property is exchanged away last year and no more depreciation needed from this property (since the new property uses the combined basis on a new 27.5 year schedule, https://blog.fgg1031.com/blog/how-to-calculate-depreciation-after-a-1031-exchange)
