Turbo Tax is trying to do a 1031 exchange but I didn't own my previous home

[Tuite]

A 1031 exchange is only possible if you sell a property you own and buy a replacement property.  If you did not sell a property you own, you should not report any sale and consequently TT cannot report a 1031 exchange if no entry in made in TT.  The purchase of property is not a taxable event, unless it is possibly rental property which would likely involve depreciation.

[CesarJ]

A 1031 exchange generally requires that you own the original property before you can exchange it for a replacement property.

If you didn't own your previous home, it likely doesn't qualify as the original property in a 1031 exchange.

The original property must be held for investment or used in a business to be eligible. Also, the replacement property must be "like-kind" and intended for investment or business use.

Primary residences usually don't qualify for 1031 exchanges unless special rental or investment use criteria are met, including ownership for at least two years.

Since you didn't own your previous home, you probably cannot use it in a 1031 exchange to defer taxes in TurboTax.

@mark-faylor