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New Member

Should there be depreciation expense after a 1031 exchange? For tax year 2018, I reported in kind exchange. Why there is no depreciation expenses in 2019?

Turbotax was used for both years for filing. How can I override the 0 depreciation amount?
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Level 15

Should there be depreciation expense after a 1031 exchange? For tax year 2018, I reported in kind exchange. Why there is no depreciation expenses in 2019?


@xuelanwu2 wrote:
Turbotax was used for both years for filing. How can I override the 0 depreciation amount?

Did you actually add the replacement property as an asset in the Rental Properties section of the program?

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Expert Alumni

Should there be depreciation expense after a 1031 exchange? For tax year 2018, I reported in kind exchange. Why there is no depreciation expenses in 2019?

After a 1031 exchange, you need to set up the asset you received in the exchange, just like when you set up an asset after you purchase it.

 

For a Rental Property, the asset needs to be set up in the Rental Property section of TurboTax.

 

After you set the asset up with the value you have, then TurboTax will calculate the depreciation.

 

If this is a rental property, then the asset will depreciation over 27 1/2 years.

 

@xuelanwu2

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