Schedule E asset entry for 1031 Exchange-to-DST spanning year-end?

[RickG_123]

We sold a rental in December 2020, did a 1031 Exchange to a DST in January 2021.  I am following the steps here (enter exchange info first on Form 8824, then new property on Schedule E, then old property on Schedule E):

https://ttlc.intuit.com/community/taxes/discussion/1031-exchange-for-rental-property-end-to-end-ques...

However, after I create the DST as a new rental on Schedule E, when I go enter the new property as an asset, it won't let me put the date acquired/placed in-service as 2021.  That is, I want to complete the exchange "process" by having a new Schedule E property with it's basis as carried-over from the exchange.

Do I have to wait until 2021 taxes to enter this?  Or do I leave it as a rental, but with no assets until 2021?  Or is there some way to enter the asset with zero depreciation in 2020?

Thanks for any help!

 - Rick

[Anonymous_]

No, you completed your exchange by the filing deadline, so the transaction is reported on your 2020 return.

If you are transferring your basis to your replacement property, you will start deductions when placed in service. Note that you need to opt out of the two-schedule method.

[RickG_123]

What is the "two-schedule" method, and where do I opt-out of it?

So, I have my old rental with all its' assets on Schedule E, the exchange on Form 8824, and now the new DST on Schedule E, with zero days of use, and no assets until 2021.  So no new asset to hold the exchanged basis until 2021.  Does that all sound correct?

Thank you!

- Rick