It is clear that a gain on the old property reduces the basis of the new property. When looking at Form 8824, does Line 25 which refers to the adjusted cost basis of the new property take into consideration the depreciation on the old property?
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Yes As you said, the deferred gain reduces the basis of the new property, and that gain is in part determined by the accumulated depreciation. The accumulated depreciation must be carried over to the new property. If the new property is then sold (not exchanged) that depreciation will be subject to depreciation recapture (to the extent their is a gain on the sale).
Yes As you said, the deferred gain reduces the basis of the new property, and that gain is in part determined by the accumulated depreciation. The accumulated depreciation must be carried over to the new property. If the new property is then sold (not exchanged) that depreciation will be subject to depreciation recapture (to the extent their is a gain on the sale).
Do you happen to know where to input that information into TT. We did a 1031X of rental properties this past year and while I have the depreciation schedule from the sold property I'm not seeing where and exactly what I need to input into the new property's form
To enter in TurboTax online
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