Discussion:1031 Replacement Property Basis and Depreciation
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Discussion Forum Index --> Advanced Tax Questions --> 1031 Replacement Property Basis and Depreciation
Discussion Forum Index --> Tax Questions --> 1031 Replacement Property Basis and Depreciation
| 10 October 2008 | |
| I am working on my first 1031 deferred exchange in many years. I've got the exchange calcs taken care of OK and am now dealing with depreciation of the replacement property.
Relinquished property was a ranch with less than 20% (of basis) depreciable improvements (fencing, and corrals). The replacement property has @ 35% depreciable improvements (fencing, barn, shop and horse stalls). Perhaps I'm too tired at this late hour to think clearly, but if I elect out of creating carryover basis for the replacemet depreciable improvements, can I just set each category of asset up at its FMV and put the remaining basis as land? Or do I have to use some other calculation for each category of asset? | |
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