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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.
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. Line 3: If this exchange involved a related party, provide ...
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Use Parts I, II, and III of Form 8824 to report each exchange of business or investment real property for real property of a like kind. 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 ...
You would report the gain from the sale of the beds and desks as follows: Line 12: List the total FMV of property $100,000. Line 13: List the adjusted basis* of $10,000 for the property. Line 14: Subtract Line 13 from Line 12 to determine the amount of recognized gain and enter that figure $100,000 (-) $10,000.00 = $90,000.
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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. Property you received that will become your personal residence—Like-kind exchanges must be for ...
Oct 19, 2023 · When completing the form, it’s important to keep the following in mind: • Part I of Form 8824 is where you provide details about the old property and the new property. • Part II of the form comes into play only when a like-kind exchange involves "related parties"—members of a family or entities that you have a controlling interest in ...
real property on lines 1 and 2, if you are filing this form to report the disposition of property exchanged in a previously reported related party like-kind exchange. If the property described on line 1 or line 2 is real or personal property located outside the United States, indicate the country. 1 . Description of like-kind property given up: 2
