I sold my relinquished rental property in Dec 2021, did 1031 exchange, and got a rental replacement property in Jan 2022. All within 45 days of identification and 180 days closing. I use Turbotax Premier to enter 1031 exchange information. My question is that if I need to add the replacement property into section "Rental Properties and Royalties"? I think not because it was purchased in 2022 so it should not be on 2021 return but I'm still not really sure. Also what are other implications or things I need to be aware or do for this situation (cross tax years)? Fox example what should I remember to file for next year in relation to this exchange.
Thank you.
You will add your new property in 2022 when it is placed in service- you will do the adjustment to the basis and report the exchange on Form 8824 again if you sold to a related person. Anytime you do a 1031 exchange you want to keep tax records for the entire time until you dispose of all properties involved.