Get the free Form 8824 - irs

Instructions for reporting the exchange of business or investment property of like kind and specific transactions related to nonrecognition of gain from certain sales.

How to fill out form 8824 - irs

How to fill out Form 8824

1. Obtain Form 8824 from the IRS website or a tax professional.
2. Read the instructions on the back of the form carefully.
3. Enter your name, address, and Social Security number at the top.
4. Complete Part I by describing the property you disposed of and the property you acquired.
5. Provide the date you exchanged the properties.
6. Fill out Part II by reporting the adjustments to basis for both properties.
7. Complete Part III by calculating the realized gain or loss from the exchange.
8. Review the form for accuracy.
9. Attach the form to your tax return.

Who needs Form 8824?

1. Taxpayers who have exchanged real property or like-kind property.
2. Individuals or entities who are deferring gain on the exchange of qualified properties under IRS rules.
3. Anyone who has completed a 1031 exchange and needs to report it for tax purposes.

People Also Ask about

Do I need to report a 1031 exchange on my tax return?

After completing a 1031 exchange, you must report the transaction to the IRS using Form 8824 to maintain the transaction's tax-deferred status. You must file the form with your annual income tax return for the year in which the exchange was completed.

Which of the following does not qualify for a tax-deferred exchange?

Under IRC §1031, the following properties do not qualify for tax-deferred exchange treatment: Stock in trade or other property held primarily for sale (i.e. property held by a developer, “flipper” or other dealer) Securities or other evidences of indebtedness or interest. Stocks, bonds, or notes.

What qualifies for a tax-free exchange?

The main requirements for a 1031 exchange are: (1) must purchase another “like-kind” investment property; (2) replacement property must be of equal or greater value; (3) must invest all of the proceeds from the sale (cannot receive any “boot”); (4) must be the same title holder and taxpayer; (5) must identify new

What must be in the United States in order for an exchange to qualify for tax deferral?

The exchanged properties must be in the United States to qualify. There are strict time limits: The replacement property must be identified within 45 days, and the exchange must be completed within 180 days. Cash or mortgage differences, called “boot,” can trigger tax liabilities.

What is required on a form 8824?

Include your name and identifying number at the top of each page of the statement. On the summary Form 8824, enter only your name and identifying number, “Summary” on line 1, the total recognized gain from all exchanges on line 23, and the total basis of all like-kind property received on line 25.

How do you qualify for a tax deferred exchange?

You must acquire one or more replacement properties that are equal to or greater in net purchase value than the net sales value of the relinquished property you sold. You must reinvest all of your net cash proceeds from the sale of the relinquished property.

What happens if you don't file form 8824?

What happens if I do not file Form 8824? There are no penalties for failure to file Form 8824 but there are consequences. For starters, you can't defer capital gains tax. This means that the exchange may be treated as a sale transaction subject to capital gains tax.

Who cannot do a 1031 exchange?

You cannot trade partnership shares, notes, stocks, bonds, certificates of trust or other such items. You cannot trade investment property for a personal residence, property in a foreign country or “stock in trade.” Houses built by a developer and offered for sale are stock in trade.

For pdfFiller’s FAQs

What is Form 8824?

Form 8824 is a tax form used by taxpayers to report like-kind exchanges of real estate, as specified under Section 1031 of the Internal Revenue Code.

Who is required to file Form 8824?

Taxpayers who engage in like-kind exchanges of property must file Form 8824 to report the details of the exchange and any realized gains or losses.

How to fill out Form 8824?

To fill out Form 8824, taxpayers should provide information about the properties involved in the exchange, dates of the exchange, adjusted basis of the properties, and any other required details related to the transaction.

What is the purpose of Form 8824?

The purpose of Form 8824 is to provide the IRS with information about like-kind exchanges, ensuring that taxpayers comply with tax regulations related to such transactions.

What information must be reported on Form 8824?

Form 8824 requires reporting information including the descriptions of the relinquished and replaced properties, dates of acquisition and transfer, adjusted basis, and any gain or loss realized on the exchange.