I have exchanged a rental property, which had Asset Worksheets (for example) for House, Renovation, Roof, and Land. The new property has Building (27.5 yrs), Site Improvements (15 yrs), and Land.
I've got the entries in Schedule E for both the relinquished and replacement properties, as well as the 8824 for the exchange. Now I'm working on the exchanged/excess basis.
Each asset worksheet (for both the relinquished and replacement properties) has the section "MACRS Property Involved in a Like-kind Exchange", which I believe should be filled-out to get the exchanged/excess basis sorted by the program.
What is to be used for the Asset ID? Form says "Enter same ID on all related assets", and help says "use the same ID on all assets involved in the transaction" - Meaning all the assets from the relinquished property? Or all the depreciable assets from the relinquished property of the same class? Or use the same ID on the corresponding assets between the relinquished and replacement properties? Or??? (I wish they provided an example in the help...!)
Is there a worksheet that shows what TT is doing with all these entries mapping assets/depreciation between the two?
Finally, my case is actually splitting the exchange from the one relinquished property into two replacement properties - accordingly I have two 8824's, each exchanging 50% of the relinquished property. What is the best way to split the depreciation entries and/or use the Asset IDs correctly in this case?
Thanks for the help!
- Rick
