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How to enter §1031 Exchange in ATX Fixed Assets


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I have Max.   Client exchanged out of a rental into another rental.   I have all the numbers and I know what the answer is.   

I don't know how to enter it in ATX.   I have been playing around a little bit with the Fixed Assets and the 8824 but I am not comfortable with what it is doing.  Fixed assets is trying to do a straight asset for asset swap and keeping it in the same activity.   Is this the way it is supposed to work?   If it is, how do I break the depreciation between the 2 activities on the E if they are both looking to the same activity for depreciation?   The 8824 does not seem to pull anything from the fixed assets, unless I am missing something.   I am just very confused on how ATX expects me to execute the exchange in the software.   Should I even be looking in Fixed assets to do this or should I just override the hell out of it to muscle it to the right answer.   I hope that is not the way this should go.  

Here is what I have right now in ATX:   Sched E activity #3 is the exchanged from rental.   It has 3 assets associated with it, 1) house 2) land 3) replacement water heater.   I need to create a new Sch E activity (#5) for the acquired rental with 2 Assets, 1) house and 2) land.  The old rental closed on 8/23/19 and the new rental closed on 9/13/19.  I need the Sch. E to stop depreciation on Activity #3 on 8/23 and start depreciating Activity #5 on 9/13 (the property came with a renter in place).

The old rental was on much more valuable land and the house was not as good as the new rental, which is in a more affordable location with a nicer home, so I want to re-allocate basis of the home and land to reflect this.   The new property is also more expensive than the old property (my client paid an extra 15K).  That is why I don't like the straight depreciation swap on old home/new home, old land/new land, and what to do with the water heater?

Can any of you walk me through the steps to get this return moving through ATX in the most efficient way?  Like "start on this entry sheet on this form..."  It has been a decade since I did a 1031 exchange in the software.   

Thanks in advance.

Tom
Modesto, CA

 

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I would stop the deprec. on the old one in fixed assets but choose do not report gain or lose so your deprec. will be correct for the time period.

then I would set up the new rental in fixed assets with the correct figures.  I always put a note the it is from a 1031 exchange in case they go somewhere else in the future.  I don't think the 8824 form will move it to the fixed assets correctly.

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It was actually not that hard after I fiddled around with it.   Actually, I duplicated the return and fiddled in that one until I had it right.   

I prepared the 8824 first, then went to fixed assets, disposition tab, type exchange.   Once I completed the disposition a new asset was created, but I was able to edit the activity.   Everything flowed smoothly through to the Sch. E.    It is pretty slick.   Reminds me why I stick with ATX.   This was one of those transactions I don't do very often, so I needed a quiet time to play with it.

Tom
Modesto, CA

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