What is the correct way to record a qualified 1031 exchange completed in 2017 using step-by-step method (not forms)?

[ray-steinberger]

From community responses, I see that there is still confusion on the exact steps to 1) correctly complete form 8824, 2) have TT figure the correct depreciation and cost basis needed for form 8824, and 3) make sure form 4797 is not generated if I had no boot on this exchange, and 4) remove the surrendered property from TT data so that it does not appear on next years Schedule E as an active rental property.  Any guidance is appreciated.

[Critter]

You will be flipping from FORMS to step by step modes to get the info you need ... start by "selling" the asset to stop the depreciation then go to the 8824 ... 

Where do I enter a like-kind exchange (Form 8824)?

Where do I enter a like-kind exchange (Form 8824)?

Where do I enter a like-kind exchange (Form 8824)?

To get to the like-kind exchange section in TurboTax:

1. Open (continue) your account, and select the Take Me to My Return button on the main screen.
2. In the search box, search for like kind (2 words, no dash) and then select the "Jump to" link in the search results.
3. On the Any Other Property Sales screen, check the Any additional like-kind exchanges box and select Continue.
4. Answer Yes on the Like-Kind Exchanges screen and follow the onscreen instructions. We'll fill out Form 8824 for you.

To delete Form 8824, follow the same steps, except when you get to the Like-Kind Exchanges screen, select the Delete button next to the item, and then answer Yes on the following screen.

Related Information:

• What is a like-kind exchange?

GEN87556

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation to get step by step instructions ... 

See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[ray-steinberger]

You suggested "start by selling the asset to stop the depreciation" - could you elaborate.  When I enter a sale of my rental property, it brings me to form 4797 (Sales of Business Property).  After filling this out, TT reflects a huge capital gain when it should be $0 since all gain was exchanged (via 1031 exchange) to the new replacement property.

[Critter]

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation to get step by step instructions ...

See this TurboTax support FAQ for a contact link and hours of operation -<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number">https://ttlc.intuit.com...>