Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Is the deferred gain on a 1031 exchange depreciated

Laila
Level 1
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

4 Comments 4
Terry53029
Level 14
Level 14

Not sure what you are asking, as deferred gain is gain that you realized, and deferred until you sell the replacement property 

abctax55
Level 15

No.

The depreciation continues on the *old* basis.  If you 'buy up' you may have additional basis to depreciate and there's an election to be made as to how to handle.

 

HumanKind... Be Both
Terry53029
Level 14
Level 14

If you are asking how to find your basis after the 1031 here is an example:

your selling price          $200,000

your adj basis                $125,000

new property price        $250,000

now you take your adj basis and add it to the difference in price of your old property and new, and that is what you use for new basis for depreciation. $125,000 + $50,000 = $175,000.

Is this what you are looking for ?

 

George4Tacks
Level 15

Greetings New User - ,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support of the not so professional .

Have a wonderful day!

 


Answers are easy. Questions are hard!