I realized this post is marked solved but the variations in responses may well cause future confusion. First of all TT handles 1031 Exchanges quite well. Go to the forms view and enter details directly into Form 8824 rather than using the interview mode. If you have multiple exchanges or multi asset exchanges you can prepare a summary and attach it to a single 8824 filling showing only the totals (see IRS instructions for the form which describe this in more detail).
Most importantly remember that you must elect-out of applying Reg. 1.168(i)-6 if you want to treat the combined basis as being placed in service at the time of replacement. Otherwise you will have to drag your old basis forward, account for any difference in year life's (i.e. residential to commercial) and so on. Although there can be some advantages to not taking the election I would seriously consider making life simple and doing so.
To choose to elect-out of the provisions of Reg. 1.168(i)-6 do so by typing at the top of Form 4562
“ELECTION MADE UNDER SECTION 1.168(i)-6T(i).” I think there is a check box in TT under the asset entry worksheet for this. I file paper so usually add manually.
