Solved
!031 Basis calculation on Replacement Property
We did a 1031 Tax Exchange for the 2021 tax year. We built a new house for the replacement rental. The new rental was finally placed in service in August of 2022. According to our 1031Form 8824, the line 25 basis of the like kind property received is $175,000. Do we need to deduct the cost which was $75,000, that we paid for the 60 acres of land that the new replacement property sits on from the $175,000 basis in order to determine the basis for depreciation of the new rental?
