How do I declare Depreciating Assets that are included in a 1031 Relinquished Real Property

[erikhedberg]

    My 1031 relinquished rental property had furniture, appliances, new A/C units, and tools that were relinquished along with the rental property.  The house was sold as is with no itemized mention of these assets in the purchase contract, but were included with the sale.  I had been depreciating these assets to their appropriate schedule, but had not reached full depreciation for many assets.  

     The 1031 was exercised  within an S-Corp.  Deprecating assets mentioned above are listed under Turbo Tax Business Version > Income > Dispose of Business Property.  Under this section,  there are several options asking "Why You Stopped using this Asset"; Sold, Stolen, Casualty Loss, Given away, or Disposed of by some other means.

Question:

1. Which reason should I pick for properly disposing of these assets in a 1031 exchange?

Thank You

[RobertB4444 · Accepted solution]

Disposed of by some other means.

You disposed of them by trading them for the new asset.  Their remaining depreciable basis should be added to the basis value of the new asset that you are depreciating.  

@erikhedberg 

[erikhedberg]

Thanks again Robert!!