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Jan 31, 2024 · Information about Form 8824, Like-Kind Exchanges, including recent updates, related forms, and instructions on how to file. Use Parts I, II, and III of Form 8824 to report each exchange of business or investment property for property of a like kind.
Form 8824. Department of the Treasury Internal Revenue Service. Like-Kind Exchanges. (and section 1043 conflict-of-interest sales) Attach to your tax return. Go to www.irs.gov/Form8824 for instructions and the latest information. OMB No. 1545-1190.
Form 8824 figures the amount of gain deferred as a result of a like-kind exchange. Use Part III to figure the amount of gain required to be reported on the tax return in the current year if cash or property that isn't of a like kind is involved in the exchange.
Jun 13, 2023 · Navigating IRS forms can be a daunting task, but with this comprehensive guide, we aim to demystify Form 8824. Form 8824, used for reporting Like-Kind Exchanges under Section 1031 of the Internal Revenue Code, can be a powerful tool for deferring capital gains taxes. Let’s dive in.
Oct 19, 2023 · What is IRS Form 8824: Like-Kind Exchange. Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes.
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.
IRS Form 8824 is used to report an exchange of real property for real property of a like kind and to calculate how much of the gain is being deferred, the basis in the acquired property, and the taxable gain to be reported in the current year.
Learn how to report like-kind exchanges on your tax return with Form 8824. While a 1031 Exchange does provide the opportunity for tax savings, it is still important to report each exchange to the IRS.
Apr 1, 2021 · If you've initiated a 1031 exchange, it's important to file your tax form 8824. Here are tips for completing the form and critical deadlines.
Jun 16, 2023 · How do I complete IRS Form 8824? There are four parts to this two-page tax form: Part I: Information on the Like-Kind Exchange; Part II: Related Party Exchange Information; Part III: Realized Gain or Loss, Recognized Gain, and Basis of Like-Kind Property Received; Part IV: Deferral of Gain from Section 1043 Conflict-of-Interest Sales
