Search results
People also ask
How does form 8824 work?
How do I fill out IRS form 8824?
How many 8824 forms do I need to file a tax return?
Does IRS use form 8824 for like-kind exchanges?
Fill out only lines 15 through 25 of each worksheet Form 8824. On the worksheet Form 8824 for the part of the property used as a home, follow steps 1 through 3 above, except that instead of following step 2, enter the amount from line 19 on line 20.
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.
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).
- 36KB
- 4
- Form 8824 and The HUD-1
- Form 8824, The 1031 Exchange Form
- Form 8824 Example
- Form 8824 Worksheet
- Form 8824 Calculations
First, let’s discuss where you will get the information that will be required to complete the form. When you close on your properties, sale of the Relinquished Property and purchase of the Replacement Property, you will receive a HUD-1 Settlement Statement to inspect and approve, and then you will be asked to sign it. You will take a copy of it wit...
The combination of the HUD-1 and the information on our Capital Gains Taxpage will be all that you need for the completion of the form. For review, we are dealing with the following scenario.
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.Part I of Form 8824 is called “Information on the Like-Kind Exchange” and contains seven lines requesting information about your Exchange. *Line 1. Description of like-kind property given up. Insert a brief description such as “Duplex located at 123 Anywhere Street, City, State, Zip.” If the transaction involved personal property, add something lik...
This Part III is called “Realized Gain or (Loss), Recognized Gain, and Basis of Like-Kind Property Received.” It contains lines 12 through 25. Lines 12 through 14 are used to report any part of your Relinquished Property transaction which was not like kind property. On Line 12 you report the fair market value of that property and on line 13 you rep...
Jul 31, 2023 · Method 1. Filling Out Form 8824. 1. Find IRS Form 8824 on the IRS website (http://www.irs.gov). Make sure you use the current tax year's form. Understand you need to fill out one Form 8824 for each exchange you make. 2. Begin to fill out the form while you're still on the IRS website.
Oct 19, 2023 · What happens in an exchange? Allowable exchanges. Exclusions and deadlines. What happens in an exchange? A like-kind exchange doesn't eliminate taxes; it just pushes them into the future. 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).