partial 1031 exchange (sold a 1031x rental property bought two replacements but received boot)

[mjtax20]

Hi, in the scenario noted above in subject: partial 1031 exchange (sold a 1031x rental property held for 4.5 years and bought two replacements but received a cash/mortgage boot),

Questions:  I have filled out form 8824 and the boot amount is shown correctly, generating a tax liability on my 1040.  However, I also have indicate the depreciation recapture for the relinquished rental property. I think there is an area on 8824 to do that, allowing a 25% tax liability for the depreciation?  But if I input that information on the form 8824, don't I also have to reduce my cost basis for that sold rental property to get an accurate (updated) adjusted cost basis for the property?  Will inputting twice double count the depreciation amount? Where should I properly input the depreciation recapture on the software?  And how is that impacted by having a partial 1031x (as normally a full 1031x defers the gain and depreciation?)   Also, how does form 4797 interface with that 1031x like-kind exchange information inputted on form 8824?  Do I fill out BOTH 4797 AND 8824, and include the sales info, etc., on 4797, which will generate a gain on 4797, along with depreciation recapture, and populate my 1040 form, and if so, won't that potentially double count my capital gain and/or deprecation recapture amounts so that my tax liability will not be property generated in the software?    Please let me know if I should only fill out some portions of 4797 or if that form automatically pulls only the appropriate information from 8824?  And if I should leave out depreciation recapture amounts all together since the transaction is a parital1031x and some of the gain is deferred and not taxed yet?    Regards,  mjd.

[Mike9241]

Questions:  I have filled out form 8824 and the boot amount is shown correctly, generating a tax liability on my 1040.  However, I also have indicate the depreciation recapture for the relinquished rental property. I think there is an area on 8824 to do that,

not on the actual 8824 but in Turbotax the recapture goes on line Q of the 8824 (forms mode)  and is the smaller of the boot or the depreciation taken on the relinquished property. in interview mode it's the screen that says Section 1250 property and asks about the depreciation.

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you do not fill out form 4797. it's automatic from the 8824 (the gain will be on line 5)

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there should also be an Unrecaptured 1250 gain worksheet. you won't see it if you are using online until you preview or print all forms and schedules. this does not go to the iRS.

on schedule D the entire gain is on line 11 while the 1250 recapture is on line 19. this is not double reporting just how a portion or all of the gain on line 11 is taxed