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Jul 5, 2024 · Form 8824 is used to report the exchange of like-kind business or investment property. Special reporting is required for like-kind exchanges involving related parties and multiple assets exchanged simultaneously.
- Part I: Information About The Like-Kind Exchange
- Part II: Information Regarding The Given Up and Received Properties
- Part IV: Related Party Information
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 their name, relationship, and address.Line 4-8: Detail the Fair Market Value (FMV), adjusted basis, and realized gain or loss of the property you gave up.Line 9-14: Enter the same details for the replacement property received. Also include any cash or debt reduction, if applicable.Line 22-24: If the exchange involves a related party, provide information about whether the related property was disposed of or the related party got rid of the property received in the exchange wi...
IRS Form 8824, the 1031 Exchange form, is where you report your Section 1031 Exchange – Delayed, Reverse, or Construction. The Form 8824 is due at the end of the tax year in which you began the transaction, as per the Form 8824 Instructions.
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.
IRS Regulations changed effective January 1st, 2018. A like-kind exchange, or 1031 exchange, can only be completed for real property. See here for more details. A like-kind exchange consists of three main steps. All three steps must be completed for the tax return to contain the correct information. Step 1: Disposing of the original asset.
Apr 1, 2021 · Upon review, you'll notice that the form has four parts. Here is a brief overview and some tips for completing each section. Part I – Information on the Like-Kind Exchange. When completing Part I of the form, you’ll need to describe the relinquished and replacement properties.
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Form 8824 - Section III Explanation. Posted May 14, 2021. Form 8824 is the part of an investor’s tax return that contains 1031 exchange transaction information. Section III of the form determines the net results of the transaction (gain or loss).
