Like-Kind Exchange

[peggysioux]

Taxpayer had residentail rental that was completely depreciated that he transferred to QI on 12/9/11 with closing statement dated 12/9/11. New property was transferred to taxpayer on 2/8/12. My question is being taxpayer did not receive the exchanged property until 2012 would I complete the 8824 in 2011 but not set up the new asset until 2012? Or does the IRS deem the exchange took place in 2011 so I should set up the new asset as of 12/9/11?

[veritas]

correct

Taxpayer had residentail rental that was completely depreciated that he transferred to QI on 12/9/11 with closing statement dated 12/9/11. New property was transferred to taxpayer on 2/8/12. My question is being taxpayer did not receive the exchanged property until 2012 would I complete the 8824 in 2011 but not set up the new asset until 2012?

The asset is placed in service in 2012. The exchange is reported in 2011.