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. The furniture and furnishings had negligible value, none assigned. He began claiming depreciation allowance on the $180,000 building. He spent $30,000 cash in capital improvements on two garages and began claiming depreciation.
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.
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all like-kind property received on line 25. When To File If during the current tax year you transferred property to another party in a like-kind exchange, you must file Form 8824 with your tax return for that year. Also file Form 8824 for the 2 years following the year of a related party exchange. See the instructions for Line 7, later, for ...
Sep 20, 2020 · Reporting of multi-asset exchanges. If you transferred and received (a) more than. one group of like-kind properties or (b) cash. or other (not like-kind) property, don't. complete lines 12 through 18 of Form 8824. Instead, attach your own statement showing. how you figured the realized and recognized. gain, and enter the correct amount on lines.
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).