Yes, you can do it from Forms Mode. Go to Forms, and click on Open Form, and type in election to defer, see attached. Choose the Election to Defer Gain Invol Conversion form and click on Open Form.
You don't have to enter the reduction of the basis of the new replacement property anywhere. Just enter your new basis on the return where you first depreciate the property.
Your basis in the replacement property is reduced by the gain postponed. You calculate the gain realized on the involuntary conversion using the IRC Section 1033(a)(2)(A) worksheet in TurboTax desktop Forms mode. (Or you can use IRS Publication 544). Then you subtract that from the cost of the replacement property to get your new basis.
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I think there's a calculation error on the Form 1033- Election to Defer Gain on Involuntary Conversion.
The computation of Realized gain doesn't use the cost of the replacement property, it uses the adjusted basis of the converted property. In my opinion, the formulas don't allow gain to be deferred at all.
Three rounds of TurboTax help, and they finally say this computation is too complex for TurboTax and that I need to go to a CPA.
If anyone else has better/different luck, I'm all ears.