recapture depreciation in a 1031 exchange with cash boot

did a 1031 like kind exchange with a cash boot of 20k........turbo tax is asking for the depreciation amount of $26147. Isnt recaptured depreciation also tax deferred in a 1031 exchange?

thanks

joel

1336

Level 12

May 12, 2021 9:06:51 PM

Boot is subject to capital gains tax and also on a pro rata amount of recaptured depreciation.

Returning Member

May 12, 2021 9:09:34 PM

ty for reply.....my income falls below 80k treshhold even with 20k added to it. How do you pro rate the recaptured depreciation?

Level 15

May 12, 2021 10:33:33 PM

first depreciation is recaptured to the extent of the boot. if boot exceeds depreciation recapture, that's taxed as capital gain

look at form 8824

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recapture depreciation in a 1031 exchange with cash boot