Good afternoon folks -

I'm reporting a like kind exchange of rental real estate for a client.  This is my first.  I understand that incidental personal property like appliances, furnishings, etc that doesn't exceed 15% of the fmv of the acquired property does not have to be identified/included in the exchange.  

Property given up purchase price $381,390

Property given up sale price $762,000

Replacement property purchase price $852,000

Incidental personal property purchase prices total $23,500

On Form 8824, in calculating basis/adjusted basis, do I start with the purchase price of the rental home as stated on the settlement statement or do I add to that purchase price the purchase prices of the incidental personal property?  

On the Asset Entry Worksheet, do I treat those items as I did the real property - just fill out the date of disposition and nothing else?  

Do I recapture the depreciation of the incidentals?  Where do I show that on 8824?

I'll wait for answers before I ask more questions.

Thank you!

Laura