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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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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 ...
Jul 31, 2023 · Admittedly, if your friend gives you a copy of a book and you give him or her a movie in return, no one will care. However, as the value rises increasingly, even the IRS wants to know what your transaction entailed. You must show you did not wrongfully profit from a transaction. You need to fill out Form 8824 to protect yourself.
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 16, 2023 · Use IRS Form 4797, Part III to figure ordinary income under recapture rules; Enter the amount from Form 4797, Line 31; Enter this number on Form 4797, Line 10, Column (g). In Column (a), enter ‘From IRS Form 8824, Line 35). Leave columns (b) through (f) blank. Line 36: Capital gain. Subtract Line 35 from Line 34. If zero or less, enter ‘0.’
