Depreciation Basis for 1031 exchanged replacemetn property

[skyworks]

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 ?

[George4Tacks]

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.

[abctax55 · Accepted solution]

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

[skyworks]

Thanks for the worksheet.

Yes I have done worksheet in excel, I know the $300k is recognized gain reported on form 4797.

But I was not sure if the basis carried from old property $600 k, should be reduced by the $300k gain realized?

Yes, I used the land and Bldg % to allocate the carry basis to the land and building for the three new condos replaced.