1031 exchange to new construction

[mchrid]

I sold a rental property in 2021 and chose to do a 1031 exchange by using the funds to build a new fourplex for rental purposes. I used a 1031 accommodator for this who had the seller amend the purchase contract to a qualified intermediary who had the funds from the sold property. The new construction is estimated to complete and available for rental in 2022.

I understand that new constructions needs to be added to Turbo Tax and Schedule E in the year they are available for the rental. Is this the case for 1031 exchanges as well? What should I do for 2021 taxes. Should I complete like-kind exchange in turbotax and have it generate 8824 form in 2021? Thanks!

[Mike9241]

form 8824 must be filed in the year of the closing on the relinquished property

what do you mean by accommodator? were they a qualified holder of the proceeds from the sale. if not, you can no longer do a 1031 exchange.   transferring the funds from a non-qualified holder to a QI won't change the proper tax results

[mchrid]

Thanks for your response. Yes, the holder of the proceeds from the sale is a qualified 1031 intermediary.

I am not sure  how to calculate the cost basis of the new property while it is still under construction. Can I use the purchase price of the new construction + construction loan expenses as the cost basis for 2021 taxes, even though the construction is not yet complete and add it as a new rental property in TT? 

Here are the rough numbers:

Depreciated Basis of the Relinquished property : 200k

Sale Price: 340k

Closing Costs: 20k

The purchase price of the new construction: 800k

Construction loan closing costs: 20k

Total cost basis of new property: 820k

My understanding is that I should add 820k - 320k + 200k (Depreciated basis) = 700k as the new cost basis for the new property.

Should I follow the steps from https://ttlc.intuit.com/community/taxes/discussion/1031-exchange-for-rental-property-end-to-end-ques... and add the new property in TT?

Thanks a lot for your help!