Turbo Tax is reporting the sale of my property incorrectly

[KatrinaB48]

What type of property did you sell?

[suncowiam]

Hi @KatrinaB48,

To be more precise, the property is a single family house (townhouse) and was part of a 1031 exchange.  It was a property I relinquished.  I better describe my situation in the following thread:

https://ttlc.intuit.com/community/taxes/discussion/re-like-kind-exchange/01/1354364/highlight/false#...

Thanks

[JamesG1]

If property A was the property reported as sold on the 4797, is property A also the property given up on IRS Form 8824 Like-Kind Exchanges as discussed in the link above?

[suncowiam]

Yes, they are the same property in both forms.

However in form 4797, it reported the deprecation values of my improvement and land of the property on two separate entries.

Form 4797

1. Property A bonus depreciations + initial recorded improvement value

2. Property A initial record land value

Another thing I saw was that Turbo Tax indicated a PAL (Passive Activities Loss) of more than I punched in for Property A.  I punched in for a loss of around 14k, but Turbo Tax went and calculated almost 180k in the Passive Activity Loss worksheet.  I think it's calculating the initial deprecation and gradual bonus depreciation values.  Otherwise, I"m not sure where it's getting this 180k value from.  This huge loss is offsetting my Passive Activity Income (74k for this year) to 0.  And, if this is true, I expect this to carry over, but my gut says this is a mistake by Turbo Tax.

Thanks

[JamesG1]

It is very common to report the land and the improvement on two separate entries on IRS form 4797.

It is also common to report depreciation recapture for 1250 and 1245 property on IRS form 4797.

I have the same concerns as were expressed on the other thread (the thread listed above) that IRS form 4797 reporting may not be appropriate and that may be the source of the problem.