Get 2008 Instruction 8824. Instructions For Form 8824, Like-kind Exchanges

A primary residence usually does not qualify for an exchange because it is not used in trade or business or investment.

Use of a like-kind exchange is appropriate in myriad situations. For example, investors may relinquish a single-family home in exchange for an apartment building, a warehouse in exchange for an office building, or one investment property for multiple properties.

Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter.

Here are a few examples of like-kind property exchanges: A multifamily property for an industrial building. Vacant land for a medical complex. An apartment building for a shopping center. A hotel for a retail property. A condominium rental for a single-family rental.

Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter.

Use Parts I, II, and III of Form 8824 to report each exchange of business or investment property for property of a like kind.

Use Parts I, II, and III of Form 8824 to report each exchange of business or investment property for property of a like kind. Certain members of the executive branch of the Federal Government and judicial officers of the Federal Government use Part IV to elect to defer gain on conflict-of-interest sales.

A primary residence usually does not qualify for an exchange because it is not used in trade or business or investment.