Form 8824

Form 8824

A form one files with the IRS to report like-kind exchanges, which are exchanges of two assets of the same type, even if of different quality, that are used for a business for investment purposes. See also: Section 1031.
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Also located on the 1031 Learning Center is a special "CPA Corner" that caters to the needs of accountants who must report 1031 Exchanges on their clients' tax returns, including an easy to use IRS Form 8824 Worksheet that prepares calculations on deferred gain, basis, and all of the other items that need to be reported on the tax return of their clients.
Fred and Sue would report the exchange in their 2005 (the year of the sale) tax return on Form 8824 (Like-Kind Exchanges form), and would report the cash deferred until 2006 on Form 6252 (Installment Income Sale form).
As a result, Form 8824, Like-Kind Exchanges (and section 1043 conflict-of-interest sales) reporting would be: line 15, $675,821 ($688,057-$12,236); line 16, $450,000 (the new property's FMV); line 17, $1,125,821 (line 15 + line 16).
Thus, the total for Form 8824, line 18 is $242,170.
Similarly, like-kind exchanges are reportable on Form 8824.
2) Like-kind exchanges are reported on Form 8824, Like Kind Exchanges.
At that time, the taxpayer exchanges the relinquished property for the replacement property held by the intermediary and fries Form 8824, Like-Kind Exchanges, reporting a simultaneous exchange with the intermediary.
The taxpayer reports the exchange of the relinquished property for the replacement property as a simultaneous exchange on Form 8824.
Form 8824, Like-Kind Exchanges (and non-recognition of gain from conflict-of-interest sales), is used to report like kind exchanges; a special section must be completed to report related-party exchanges.
Form 8824, Like-Kind Exchanges (and nonrecognition of gain from conflict-of-interest sales), requires the date(s) of transfer of the relinquished property and the date(s) of identification and receipt of replacement property.
Like-kind exchanges must be reported on Form 8824, Like-Kind Exchanges.