Like kind exchange and SchE

[herbtanz]

Did a rental properties like-kind exchange in Aug'19; have deferred gain. I've also completed the Income & Expenses (SchE) for both the property given up & the property received. How does Turbotax sink up/adjust the Assets/Depreciation in SchE for the sold property not being a full year?

[tagteam · Accepted solution]

You should have two depreciation schedules, one with a placed-in-service date in 2019 and the other (relinquished property) with the original placed-in-service date where depreciation is continuing according to your original schedule. If you opted out of the foregoing, then there is only one asset, the replacement property, that is being depreciated.

See https://www.fool.com/millionacres/taxes/depreciation/depreciation-after-1031-exchange-how-it-works/

If you need assistance entering the transaction into TurboTax, you might want to contact Support.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[mw29]

Hi @tagteam , @herbtanz  - I am trying to enter these 2 depreciation schedules, however, running into issue with what 'date placed in service' (line 3) I need to put in for the relinquished property.

If I put in the actual/real date it was first rented (in my case it's 07/31/2007), then I get an error in this form, saying the "Date placed in service cannot be before relinquished date". This matches with the instructions in https://proconnect.intuit.com/community/individual/help/1040-completing-a-like-kind-exchange-of-busi....

However, if I put in the sold/exchange date (in my case it was 3/22/2019), I end up with $0 depreciation. I think it's because on line 61 a and b both asks about the dates: a. Date placed in service of relinquished property, which is 2007 in my case, and then b. Date of disposition of relinquished property, which is the 3/22/2019.

Help please...