Form 8824: Like-Kind Exchanges
Form 8824 reports Section 1031 like-kind exchanges of business or investment property. It calculates deferred gain, replacement property basis, and any taxable boot received in the exchange.
Key Information Required
- Description of relinquished and replacement properties
- Transfer and receipt dates
- 45-day identification and 180-day completion compliance
- Fair market value of both properties
- Adjusted basis of relinquished property
- Boot received (cash or non-like-kind property)
- Exchange expenses (closing costs, commissions)
Exchange Deadlines
- 45 days: Identify replacement property
- 180 days: Complete the exchange
- Filing: Must file in the tax year of the exchange
- Related parties: Additional 2-year reporting
Common Errors
Incorrect boot calculation, missed deadlines, improper expense reporting, failure to use a qualified intermediary, and not filing in the exchange year can disqualify the exchange.
Related Terms
- Closing — Exchange deadlines start at closing
- Equity — Tax-deferred equity preservation
- Escrow — Exchange funds held by qualified intermediary
Barnes Walker 1031 Exchanges
Barnes Walker's attorneys structure and document Section 1031 exchanges for Florida real estate investors. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC