ProConnect puts the carryover basis asset for a 1031 exchange on the old Schedule E

Forum|Forum|1 year ago
April 22, 2025
2 replies
10 views

When you enter a 1031 "like-exchange" in ProConnect, and use the standard (not simplified) method to continue the depreciation of the old property basis, it creates a carryover depreciation asset for you so you can track the carryover basis in the new property. Ok great. But the problem is it associates that carryover depreciation schedule asset with the old Schedule E rental activity. There isn't any way to tell it that the carryover depreciation asset has to be associated with the new Schedule E rental activity for the new property??

I saw a post on here from a few years ago that mentioned the same issue, but there were no replies.

This topic has been closed for replies.

Best answer by anvillaunch

I happened to come across an answer to this issue from a training video, so I'll answer my own question here. There isn't a way to make ProConnect associate the carryover basis with a new Schedule E rental. But what they want you to do is to keep the new and old properties as the same Schedule E rental.

So maybe to fit both addresses (or at abbreviations) into the Schedule E address field of one "property" entry. And put the income/expenses for both properties on the same Schedule E property. And that way when ProConnect puts all the depreciation on that same rental for both the new and old exchanged property, it's ok. A side advantage of this is that it also retains any suspended losses associated with it since you're just continuing the same rental entry.

It's a little weird and confusing, but it works.

George4Tacks

Level 15

It sounds like you did this exchange the prior year and now you see the problem. Is that correct?

Did you want the simplified method, but didn't get it?

Did you see this HOW TO article https://accountants.intuit.com/support/en-us/help-article/federal-taxes/completing-like-kind-exchange-depreciation-screen/L4dLFfCoC_US_en_US?uid=m9u0t33d

Answers are easy. Questions are hard!

A

anvillaunchAuthorAnswer

Level 2

I happened to come across an answer to this issue from a training video, so I'll answer my own question here. There isn't a way to make ProConnect associate the carryover basis with a new Schedule E rental. But what they want you to do is to keep the new and old properties as the same Schedule E rental.

So maybe to fit both addresses (or at abbreviations) into the Schedule E address field of one "property" entry. And put the income/expenses for both properties on the same Schedule E property. And that way when ProConnect puts all the depreciation on that same rental for both the new and old exchanged property, it's ok. A side advantage of this is that it also retains any suspended losses associated with it since you're just continuing the same rental entry.

It's a little weird and confusing, but it works.

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