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Jun 13, 2023 · 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. Line 2: Enter the date the property was transferred and the date you acquired the replacement property.
Oct 19, 2023 · 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.
If the taxpayer traded this vehicle in for a new vehicle, select a Form 8824, Like-Kind Exchanges, to use to compute the gain or loss. You can only report one vehicle trade-in on each copy of Form 8824.
Nov 29, 2023 · By. Luis Rivero, CPA. on. November 29, 2023. Understanding and correctly filing IRS Form 8824 is crucial for anyone involved in a like-kind exchange. This comprehensive guide will explain why mastering Form 8824 is essential for accurately reporting a 1031 exchange to the IRS.
Form 8824, Part IV (Deferral of Gain From Section 1043 Conflict-of-Interest Sales) is not supported in Drake Tax. Form 4797 Not Generating. Form 4797 will only generate if there is realized gain on the exchange.
Failure to report your 1031 Exchange will invalidate your Exchange and trigger the Capital Gains tax and the Depreciation Recapture, and probably some penalties. The name of the form is Form 8824, it’s called Like-Kind Exchanges, and you attach it to your Form 1040 if you are an individual.
Fill Our IRS Form 8824. You should prepare IRS Form 8824: Like-Kind Exchanges for all like-kind exchanges. Special rules apply for: Multi-assets; Exchanges made with someone you’re related to; Property you once used as your personal residence
