Get U.S. TREAS Form Treas-irs-8824-1997. Free Download

How do you report Section 1031 Like-Kind Exchanges to the IRS? You must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with your tax return for the year in which the exchange occurred.

A 1031 exchange is reported on Form 8824, Like-Kind Exchanges. The form is filed for the tax year in which the taxpayer transferred property to another party as part of the exchange. State reporting requirements may also apply.

Failure to file this form and correctly report the required information can result in a reversal of your 1031 Exchange and potentially trigger penalties. This form must be completed and filed along with your tax return at the end of the tax year in which you sold your relinquished property and began your 1031 Exchange.

Purpose of Form 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.

Your settlement agent is required to submit the 1099-S upon the completion of every sale and Form 8824 is your way of notifying the IRS that you did an exchange on that sale and may have deferred your tax liability.

Essential Documents Needed for Initiating a 1031 Exchange Tax returns and financial statements. Property title and deed. Purchase agreement and closing statement. 1031 exchange agreement with a qualified intermediary.

How do you report Section 1031 Like-Kind Exchanges to the IRS? You must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with your tax return for the year in which the exchange occurred.

1031 Exchange Forms Taxpayers report exchanges on Form 8824, like-kind exchanges, attaching it to their returns. The form asks for: Descriptions of properties sold and purchased. Key dates including when the sold property was originally acquired and when the replacement property was identified and acquired.