Get the free Form 8824

Instructions for reporting like-kind exchanges and section 1043 conflict-of-interest sales, including details on filing, property classification, and exchange reporting requirements.

How to fill out form 8824

How to fill out Form 8824

1. Obtain Form 8824 from the IRS website or through tax filing software.
2. Fill in your name, address, and taxpayer identification number at the top of the form.
3. Provide details about the like-kind property you disposed of and the like-kind property you acquired.
4. Report the date you disposed of the old property and the date you acquired the new property.
5. Include the fair market value of the property when it was exchanged.
6. Calculate the realized gain or loss on the exchange.
7. Complete any additional sections that apply to your specific exchange situation.
8. Sign and date the form before submitting it with your tax return.

Who needs Form 8824?

1. Individuals or businesses that have exchanged real property for other real property in a like-kind exchange.
2. Taxpayers who want to defer capital gains taxes on the property exchanged.
3. Individuals or entities conducting real estate transactions that fall under Section 1031 of the Internal Revenue Code.

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 property under Section 1031 of the Internal Revenue Code.

Who is required to file Form 8824?

Taxpayers who have completed a like-kind exchange of real property are required to file Form 8824 to report the details of the exchange.

How to fill out Form 8824?

To fill out Form 8824, taxpayers need to provide information about the properties exchanged, the date of the exchange, the values of the properties, and any gain or loss realized from the exchange.

What is the purpose of Form 8824?

The purpose of Form 8824 is to report the details of a like-kind exchange and to defer the recognition of taxable gain or loss in accordance with IRS regulations.

What information must be reported on Form 8824?

Form 8824 requires reporting information such as the description of the properties exchanged, the dates of transfer, fair market values, and any adjustments to basis or gain realized.