IRS 8824 2023 free printable template

Form8824Department of the Treasury Internal Revenue ServiceLikeKind ExchangesOMB No. 154511902023(and section 1043 conflictofinterest sales) Attach to your tax return. Go to www.irs.gov/Form8824 for

How to fill out form 8824 instructions

How to fill out IRS 8824

1. Obtain Form 8824 from the IRS website or your tax preparation software.
2. Provide your name and taxpayer identification number at the top of the form.
3. Complete Part I by describing the properties involved in the exchange, including the like-kind property you gave up and the like-kind property you received.
4. In Part II, calculate the realized gain or loss by subtracting your adjusted basis in the property given up from the fair market value of the property received.
5. Complete any necessary calculations regarding boot received and the deferment of gain if applicable.
6. Review the form for accuracy and ensure all required fields are filled out properly.
7. Attach Form 8824 to your tax return when filing.

Who needs IRS 8824?

1. Taxpayers who have engaged in a like-kind exchange of real estate or certain types of personal property.
2. Individuals or entities that want to defer capital gains taxes on property exchanged under Section 1031 of the IRS code.

Video instructions and help with filling out and completing 8824 form

Instructions and Help about 8824 pdf

Frequently asked questions IRS Form 88 24 like-kind exchanges any time a taxpayer performs an exchange they or their tax advisor are going to need to complete form 88 24 what's referred to as the light kind exchanges form, and I've got a screenshot of it here on the screen on this form the taxpayer is going to need to provide certain information to the IRS a description of the like-kind property given up a description of the like-kind property received the date the like-kind property given up was originally acquired and then next the date the taxpayer actually transferred this property to a buyer so between those two segments keep in mind they're really looking for the potential holding period that's what you're giving to the IRS the next the date the like-kind property received was identified by written notice to another party next the date the taxpayer actually received the like-kind property from the other party and then finally they asked a question was the exchange of property involving a related party and in the situation where the answer yes it did involve a related party part — a form 88 24 asks for more information regarding the related party who are they their address they're identifying tax number their relationship to the taxpayer so if you're involved with an exchange with the related party you're going to actually have to disclose this information to the IRS via this form to review your specific 1031 exchange situation contact asset preservation headquarters in California at 800 — a — 1031 or our Eastern Regional Office in New York at 866 3 9 4 1031 please read the full disclaimer as asset preservation cannot provide tax or legal advice

People Also Ask about 8824 pdf

How do I record a 1031 exchange?

Your 1031 exchange must be reported by completing Form 8824 and filing it along with your federal income tax return. If you completed more than one exchange, a different form must be completed for each exchange.

What is the 95% rule in a 1031 exchange?

The 95 Percent Rule The total value of the properties identified CAN exceed 200 percent of the relinquished property's value, BUT you have to close 95% of the aggregate value of all the properties that have been identified.

Does a 1031 get a stepped up basis?

If you are holding investment property that had been part of a 1031 Exchange, upon your death, your heirs get the Stepped-Up Basis. All of the built in gain disappears upon the taxpayer's death. What that means is the value of the property at the date of your death would pass through your estate to your heirs.

Which of the following qualifies as a like-kind exchange?

The correct answer is d) A Dodge Ram pickup truck used in business traded in for a new Ford 250 pickup truck also intended for business use. A like-kind exchange is used to save tax liability in a similar kind of exchange.

Which of the following would not qualify as a 1031 exchange?

Examples of property that does not qualify for tax-deferral treatment under Section 1031: Personal use properties. Property held for sale, such as spec homes, building lots and “flips” Partnership interests.

How do you calculate basis for a new 1031 property?

An Example Calculating the Basis in 1031 Exchange In this case, you calculate your new basis by taking the original property's adjusted basis ($170,000), adding your new mortgage ($250,000), and subtracting the original property's outstanding mortgage ($150,000). This gives you a new tax basis of $270,000.

What qualifies as a like kind exchange?

Properties are of like-kind if they're of the same nature or character, even if they differ in grade or quality. Real properties generally are of like-kind, regardless of whether they're improved or unimproved. For example, an apartment building would generally be like-kind to another apartment building.

How do you calculate adjusted basis for a 1031 exchange?

New Property's Cost Basis The new or acquired property's cost basis must also be calculated. This is just the purchase price plus commissions. We'll use a purchase price of $400,000 plus $15,000 in closing cost for a cost basis of $415,000.

How to complete 8824?

Line 1: List the address or legal description and type of property relinquished (sold). Line 2: List the address or legal description and type of property received. Line 3: List the month, day, year relinquished property was originally acquired. Line 4: List the date relinquished property was transferred to the buyer.

What happens if you don't use all the money in a 1031 exchange?

When you don't exchange all your proceeds, it's called a “partial 1031 exchange.” The portion of the exchange proceeds that are not reinvested is called “boot,” and are subject to capital gains and depreciation recapture taxes. It's important to note that boot can take different forms.

How do you calculate adjusted basis of property?

Your adjusted basis is generally your cost in acquiring your home plus the cost of any capital improvements you made, less casualty loss amounts and other decreases.

What exchanges are not considered a like-kind exchange?

Securities, stocks, bonds, partnership interests, and other financial assets are excluded from the definition of like-kind property. Many people believe that like-kind properties must be of the same size or type to qualify. But that's not true—different assets can be exchanged as long as they qualify.

What is the new basis in a like-kind exchange?

The basis of the property you acquire in a like-kind exchange is generally the same as the basis of the property you transferred.

Who holds the cash in a 1031 exchange?

The qualified intermediary holds the money until you acquire the replacement property and your qualified intermediary will deliver funds to the closing agent.

How do you calculate adjusted basis of like-kind property given up?

It is calculated by taking the property's original cost, adding the costs for improvements and related expenses and subtracting any deductions taken for depreciation and depletion. It is necessary for determining capital gains taxes owed from the sale.

What can you roll a 1031 exchange into?

A 1031 exchange occurs when real estate investors sell one investment property (the relinquished asset) and roll the proceeds over into a “like-kind” property (the replacement asset). By completing exchanges, investors can defer any capital gains liabilities on their profits.

Do I have to spend all the money in a 1031 exchange?

In a standard 1031 exchange, you need to reinvest 100% of the proceeds from the sale of your relinquished property to defer all capital gains taxes. In a partial 1031 exchange, you can decide to keep a portion of the proceeds. This boot amount is taxable, while the money you reinvest is not.

How do I prepare for a 1031 exchange?

How to do a 1031 exchange Step 1: Identify the property you want to sell. Step 2: Identify the property you want to buy. Step 3: Choose a qualified intermediary. Step 4: Decide how much of the sale proceeds will go toward the new property. Step 5: Keep an eye on the calendar. Step 6: Be careful about where the money is.

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What is IRS 8824?

IRS Form 8824 is used to report like-kind exchanges of real property under Section 1031 of the Internal Revenue Code, allowing taxpayers to defer capital gains taxes on the exchange.

Who is required to file IRS 8824?

Taxpayers who have engaged in a like-kind exchange of real estate must file Form 8824 to report the transaction and any gain or loss associated with it.

How to fill out IRS 8824?

To fill out IRS Form 8824, taxpayers must provide information about the exchanged properties, including descriptions, the dates of acquisition and transfer, the adjusted basis, and the fair market values of the properties involved in the exchange.

What is the purpose of IRS 8824?

The purpose of IRS Form 8824 is to facilitate the reporting of like-kind exchanges, ensuring compliance with tax regulations that allow for the deferral of capital gains taxes when certain conditions are met.

What information must be reported on IRS 8824?

Form 8824 requires reporting of the details of both the relinquished and acquired properties, including their fair market values, the dates of the transactions, the taxpayer's basis in the properties, and any gain realized from the transaction.