Hello,

Thank you for your quick reply, so you are saying all the Deferred gain would be subject to short term gain is correct.

Here is an example.

The original property was bought 2010, $ 94k with Dep 25K so adjusted basis was 69K, then 2021 Oct, they did 1031 exchange, with deferred gain 123k also replacement prop value was 236K, and 2022 March Sale 2750K.  so, based on fact I put date of acquired and date of service Oct -2021 and adjusted basis of the replacement prop is (236K- 123) =112K and now sold (275K-112K) = 163K Gain,   

Qs 1. Software treats all 163K gain is subject to short term capital gain because of the date of service and date of acquired I put Oct -2021 and sold March -2022.  My question is how I can separate Deferred gain of 123K and report as long-term cap gain and balance 40k is short term.

Extremely sorry to bother you guys.