Land Value After 1031 Exchange 2 New Assets (Under Sec 1.168(i)-6(i))

[Dave918]

I have done a 1031 exchange of a property with a larger land value (house) into one with no land (condo). I am using the 2 asset method and not opting out of Sec 1.168(i)-6(i). Do I need to use the land value from the relinquished property for the Exchanged basis in the asset which represents it for the new property (which doesn't have land)? Thanks in advance for your response.

[GeorgeM777]

Yes.  As provided in Treasury Regulation 1.1031(d)-1 the basis (adjusted to the date of the exchange) of the property transferred by the taxpayer, decreased by the amount of any money received and increased by the amount of gain recognized, must be allocated to and is the basis of the properties (other than money) received on the exchange.

@Dave918 

[Dave918]

Thanks but this does not answer my question which involves the valuation of the land in the new asset. Do I need to use the land value from the relinquished property for the Exchanged basis in the asset which represents it for the new property (which doesn't have land)? Thank you