FORM 8824, THE LIKE KIND EXCHANGE FORM. The combination of the HUD-1 and the information on our Capital Gains Tax page will be all that you need for the completion of the form. For review, we are dealing with the following scenario. FORM 8824 EXAMPLE. Alan Adams bought a Duplex ten years ago for $200,000 cash. He assigned a value of $20,000 to ...
Form 8824 figures the amount of gain deferred as a result of a like-kind exchange. Part III computes 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, the basis of the like-kind property received is figured on Form 8824.
exchange property on Form 8949 when reporting an exchange on Form 8824. If you made more than one like-kind exchange in the same year, you should file only one summary Form 8824 and attach a statement showing all the information requested on Form 8824 for each exchange. Include your name and tax ID number at the top of each page of the statement.
The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects.
Form 4797 Not Generating. Form 4797 will only generate if there is realized gain on the exchange. Per the 8824 Instructions, "Generally, if you exchange business or investment real property solely for business or investment real property of a like kind, section 1031 provides that no gain or loss is recognized. If, as part of the exchange, you ...
May 03, 2021 · For a successful like-kind exchange that straddles two years, the taxpayer will report the transaction on IRS Form 8824. The exchange will be reported for the year in which the exchange began.
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