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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.
Example 1. The taxpayer received $10,000 in cash (i.e., equity not spent), was relieved of $10,000 in net debt, and had $5,000 in closing costs. $10,000 [cash] (+) $10,000 [net debt relief] = $20,000 (-) $5,000 [Closing Costs] = $15,000. List $15,000 (the amount of “boot” recognized).
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.
Jan 31, 2024 · Page Last Reviewed or Updated: 31-Jan-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.
Oct 19, 2023 · Say you paid $20,000 for a piece of business or investment real estate and sold it for $30,000 ($30,000 - $20,000 = $10,000 capital gain). Rather than have the $10,000 profit taxed as a capital gain, the like-kind exchange allows the gain to be "passed on" to the new property used for business.
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, THE 1031 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 the land.
