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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 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
Dec 11, 2023 · How to create multiple assets with the Like-Kind Exchange Wizard. Because the Like-Kind Exchange Wizard is designed to exchange several assets for one or one asset for another, you'll need to take additional steps to show an exchange involving one asset for multiple.
Jun 13, 2023 · Form 8824 primarily deals with the concept of Like-Kind Exchanges. These are exchanges where you trade business or investment properties of a similar kind and defer the capital gain or loss recognition until the replacement property is sold or disposed of in a taxable transaction.
Both individuals and businesses—corporations, partnerships and sole proprietorships—can carry out like-kind exchanges. However, the property involved must be used for business or investment. Beginning in 2018, like-kind exchanges can only be done with real property such as a rental home.
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Apr 1, 2021 · Upon review, you'll notice that the form has four parts. Here is a brief overview and some tips for completing each section. Part I – Information on the Like-Kind Exchange. When completing Part I of the form, you’ll need to describe the relinquished and replacement properties.
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How does form 8824 work?
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What is form 8997 & 8824?
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Completing Form 8824 WHEN TO FILE This form must be included with your tax return for the tax year in which a relinquished property was trans-ferred (given up). Generally, the IRS prefers the use of only one 8824 form and the attachment of a statement indicating how you determined the gain if more than one exchange is entered into during one ...
