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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. Also, use Part III to figure the basis of the like-kind property received.
www.irs.gov › instructions › i8824Instructions for Form 8824 (2023) | Internal Revenue Service
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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. Also, use Part III to figure the basis of the like-kind property received.
Jun 13, 2023 · Adjusted basis of the given up property; Any cash received or paid; Liability assumed by the other party or yourself; Filling Out Form 8824: A Step-by-Step Process. Part I: Information About the Like-Kind Exchange. Line 1: Describe the property you gave up and the like-kind property you received.
Jun 16, 2023 · Part III: Realized Gain or Loss, Recognized Gain, and Basis of Like-Kind Property Received. In Part III, we’ll calculate any realized gain or loss, recognized gain, and basis of property received in the like-kind exchange transaction. If you gave up property that was not like-kind, complete Lines 12 through 14.
Cost or basis should be the Excess (additional) basis from the 8824 Replacement Property Depreciable Basis Components Smart Worksheet. Choose the most accurate Type of asset . Scroll down to the MACRS Property Involved in a Like-kind Exchange or Involuntary Conversion section.
Oct 19, 2023 · By law, several kinds of property do not qualify for a like-kind exchange: • Business inventory. • Stocks, bonds and other securities. • Ownership interest in a partnership business. • Certificates of trust or an interest in a trust as a beneficiary. • Rights to sue.
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Nov 29, 2023 · Additionally, Form 8824 helps track the basis of like-kind property, which is vital for future tax calculations. Eligibility Criteria: Who Can Utilize a 1031 Exchange? To be eligible for a 1031 exchange, the involved properties must meet certain criteria. The relinquished and replacement properties must be held for business or investment purposes.
Jun 7, 2019 · Employee Tax Expert. Generally if your issue is involving like-kind property between two personal residences, the basis is the same for both properties. If involving rental property, the depreciation may be adjusted differently between AMT and regular tax purposes.
