Depreciation Basis for 1031 exchanged replacemetn property

Hi,

I have a 1031 exchange, sold rental property for 2.2 M, purchased three total together 1.9 M.

It is partial exchange.

There basis is $600k left from the property sold, so carry over this basis over under the remaining life of the asset (which is 17.5 years =27.5-10).

Should I subtract $300 k out from the basis due to the replacement cost was less ?

This topic has been closed for replies.

Best answer by abctax55

And, don't forget the allocating of the transfer basis to land & improvements.

Level 15

From your descriptions, $300K is taxable.

There are many worksheets available. I have Tax Tools and it has a wonderful worksheet. The internet also has many, such as https://www.efirstbank1031.com/documents/Form8824Worksheet.xls

Do a worksheet first. You will also need to create spreadsheet to allocate the exchange to the 3 replacement properties.

Answers are easy. Questions are hard!

Level 15

And, don't forget the allocating of the transfer basis to land & improvements.

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