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2013

Department of the Treasury

Internal Revenue Service

Instructions for Form 8824

Like-Kind Exchanges

(and section 1043 conflict-of-interest sales)

line 23, and the total basis of all like-kind

deferred exchange to qualify as like-kind,

Section references are to the Internal Revenue

Code unless otherwise noted.

property received on line 25.

you must comply with the timing

requirements for identification and receipt

When To File

General Instructions

of replacement property explained in the

instructions for line 5 and line 6.

If during the current tax year you

Future developments. For the latest

If you make a deferred exchange using

transferred property to another party in a

information about developments related to

a qualified intermediary (QI), the transfer

like-kind exchange, you must file Form

Form 8824 and its instructions, such as

of the property given up and receipt of

8824 with your tax return for that year.

legislation enacted after they were

like-kind property is treated as a like-kind

Also file Form 8824 for the 2 years

published, go to

exchange. If you fail to meet the timing

following the year of a related party

requirements because of the QI, your

exchange (see the instructions for line 7).

Purpose of Form

transaction will not qualify as a deferred

Like-Kind Exchanges

Use Parts I, II, and III of Form 8824 to

exchange and any gain may be taxable in

report each exchange of business or

the year you transferred the property.

Generally, if you exchange business or

investment property for property of a like

However, if the QI defaults on its

investment property solely for business or

kind. Certain members of the executive

obligation to acquire and transfer

investment property of a like kind, section

branch of the Federal Government and

replacement property because of

1031 provides that no gain or loss is

judicial officers of the Federal Government

bankruptcy or receivership proceedings

recognized. If, as part of the exchange,

use Part IV to elect to defer gain on

and you meet certain requirements, you

you also receive other (not like-kind)

conflict-of-interest sales. Judicial officers

may be able to report the gain in the year

property or money, gain is recognized to

of the Federal Government are the

or years payments are received. For the

the extent of the other property and money

following:

requirements, see Rev. Proc. 2010-14,

received, but a loss is not recognized.

2010-12 I.R.B. 456, available at

1. Chief Justice of the United States.

Section 1031 does not apply to

2. Associate Justices of the Supreme

exchanges of inventory, stocks, bonds,

Court.

Multi-asset exchanges. A multi-asset

notes, other securities or evidence of

exchange involves the transfer and receipt

3. Judges of the:

indebtedness, or certain other assets. See

of more than one group of like-kind

section 1031(a)(2). In addition, section

a. United States courts of appeals,

properties. For example, an exchange of

1031 does not apply to certain exchanges

b. United States district courts,

land, vehicles, and cash for land and

involving tax-exempt use property subject

including the district courts in Guam, the

vehicles is a multi-asset exchange. An

to a lease. See section 470(e)(4).

Northern Mariana Islands, and the Virgin

exchange of land, vehicles, and cash for

Islands,

If you exchanged stock in a

land only is not a multi-asset exchange.

mutual ditch, reservoir, or

The transfer or receipt of multiple

c. Court of Appeals for the Federal

TIP

irrigation company, see the

properties within one like-kind group is

Circuit,

discussion later.

also a multi-asset exchange. Special rules

d. Court of International Trade,

apply when figuring the amount of gain

e. Tax Court,

Like-kind property. Properties are of like

recognized and your basis in properties

kind if they are of the same nature or

received in a multi-asset exchange. For

Court of Federal Claims,

character, even if they differ in grade or

details, see Regulations section

g. Court of Appeals for Veterans

quality. Personal properties of a like class

1.1031(j)-1.

Claims,

are like-kind properties. However,

Reporting of multi-asset exchanges.

h. United States Court of Appeals for

livestock of different sexes are not

If you transferred and received (a) more

the Armed Forces, and

like-kind properties. Also, personal

than one group of like-kind properties or

property used predominantly in the United

Any court created by Act of

(b) cash or other (not like-kind) property,

States and personal property used

Congress, the judges of which are entitled

do not complete lines 12 through 18 of

predominantly outside the United States

to hold office during good behavior.

Form 8824. Instead, attach your own

are not like-kind properties. See Pub. 544,

statement showing how you figured the

Multiple exchanges. If you made more

Sales and Other Dispositions of Assets,

realized and recognized gain, and enter

than one like-kind exchange, you can file

for more details.

the correct amount on lines 19 through 25.

only a summary Form 8824 and attach

Real properties generally are of like

Report any recognized gains on your

your own statement showing all the

kind, regardless of whether they are

Schedule D; Form 4797, Sales of

information requested on Form 8824 for

improved or unimproved. However, real

Business Property; or Form 6252,

each exchange. Include your name and

property in the United States and real

Installment Sale Income, whichever

identifying number at the top of each page

property outside the United States are not

applies.

of the statement. On the summary Form

like-kind properties.

8824, enter only your name and identifying

Exchanges using a qualified exchange

Deferred exchanges. A deferred

number, “Summary” on line 1, the total

accommodation arrangement (QEAA).

exchange occurs when the property

recognized gain from all exchanges on

If property is transferred to an exchange

received in the exchange is received after

accommodation titleholder (EAT) and held

the transfer of the property given up. For a

Apr 11, 2013

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2013

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