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Use Parts I, II, and III of Form 8824 to report each exchange of business or investment real property for real property of a like kind. Form 8824 figures the amount of gain deferred as a result of a like-kind exchange.
Jun 13, 2023 · Learn how to report like-kind exchanges under Section 1031 of the Internal Revenue Code using Form 8824. This guide covers the basics, the step-by-step process, and the annual revisiting of the form.
Jun 16, 2023 · Line 1: Description of like-kind property given up. As a general rule, only real property should be described on Lines 1 and 2. This includes intangible property that is treated as real property for like-kind exchange purposes.
• Part I of Form 8824 is where you provide details about the old property and the new property • Part II of the form comes into play only when a like-kind exchange involves "related parties"—members of a family or entities that you have a controlling interest in. • Part III is for reporting details about any gains or losses from the transactions...
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IRS Form 8824 is very complicated and uses terms with which most exchangers are not familiar. As exchangers had many questions, this Workbook was published to be of assistance to them to properly report an exchange.
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2 min read. Share: In a like-kind exchange, you might exchange real property for similar property used solely for business or investment. If so, you might completely or partially defer gain on the exchange. If your gain is tax-deferred, you won’t recognize gain and pay tax until you dispose of the new property.
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FORM 8824 WORKSHEET. Tax Deferred Exchanges Under IRC § 1031 Worksheet 1. Taxpayer Exchange Property Replacement Property Date Closed. Before preparing Worksheet 1, read the attached Instructions for Preparation Of Form 8824 Worksheets. Then, prepare Worksheet 1 after you have finished the preparation of worksheets 2 and 3.
