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MS1962
New Member

1031 exchange using the Business TT

I have a related issue. I use the Business version of TT and I will need to go into Forms to fill out the 8824. I have exchanged 4 rental properties for 1, have calculated the sum of the adjusted basis for the 4 properties, the exchange group surplus, and the new basis for the replacement property in order to attach a statement, and to add the new rental property with the adjusted bases.  I don't understand how to "tell" TT that I am no longer using the relinquished properties so that the depreciation is correct on form 8825.  Also, will I just be able to delete the entire property next year for my return, since I can't follow the prompts for disposing of the assets in a like kind exchange because I only have one replacement property? 

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1 Reply
RobertB4444
Expert Alumni

1031 exchange using the Business TT

You need to enter the property you are relinquishing into the system as 'sold'  with a sale price exactly equal to the basis on the date of transfer so that there is no gain or loss on the sale.  That reports the property as removed from your taxes and also gets it out of there for next year.

 

@MS1962 

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