1031 Exchange with multiple properties does not properly defer capital gain

[Ofemond808]

In 2019 Turbo Tax (Home & Business), I entered a data for a like-kind-exchange for a rental property sold for $900K.  In exchange, it was replaced by 10 rental properties for a combined purchase of $1.5M, with about 687K in new loans for the 10 new rental properties.  I also entered in $98K in expenses (commissions, loan fees, closing cost, etc).  At the end of the like kind exchange questions, Turbo Tax shows I have 0 realized gains and nearly $300k in deferred gains. Yet, when I look at the 1040 form, it shows $300k in capital gains.  I cant figure out why Turbo Tax form 1040 is doing this.  Any suggestions or recommendations is much appreciated.  

[Anonymous_]

You will most likely need to speak with Support (link below) for this scenario. 

TurboTax does not actually support this type of exchange but Support has been able to walk some users through the procedure and troubleshoot any input (or software) errors.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[Ofemond808]

I called Turbo Tax support who was very courteous and pleasant to talk to.  She instructed me to go to Form 8824 and enter my 1031 Exchange numbers directly instead of entering data into the wizard walk-through screens.  She also sent me some articles about 1031 depreciation that was helpful, but did not address the issue within Turbo Tax.  The net bottom line is that Turbo Tax is really not suited or designed to properly capture data to feed into Form 8824.  The IRS instructions for form 8824 are insufficient and confusing to complete.  I was able to find a useful Youtube video and a worksheet that helps to calculate certain line numbers on form 8824.  Check out:

https://www.efirstbank1031.com/2accountantsInfo/10form8824.htm

https://www.youtube.com/watch?v=dM1lrioY9pE