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2014

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

Section references are to the Internal Revenue

Deferred exchanges. A deferred

Code unless otherwise noted.

property received on line 25.

exchange occurs when the property

received in the exchange is received after

When To File

General Instructions

the transfer of the property given up. For a

deferred exchange to qualify as like-kind,

If during the current tax year you

Future developments. For the latest

you must comply with the timing

transferred property to another party in a

information about developments related to

requirements for identification and receipt

like-kind exchange, you must file Form

Form 8824 and its instructions, such as

of replacement property explained in the

8824 with your tax return for that year.

legislation enacted after they were

instructions for

Line 5

and

Line

6, later.

Also file Form 8824 for the 2 years

published, go to

following the year of a related party

If you make a deferred exchange using

exchange. See the instructions for

Line

Purpose of Form

a qualified intermediary (QI), the transfer

later, for details.

of the property given up and receipt of

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

like-kind property is treated as a like-kind

Like-Kind Exchanges

report each exchange of business or

exchange. If you fail to meet the timing

investment property for property of a like

requirements because of the QI, your

Generally, if you exchange business or

kind. Certain members of the executive

transaction will not qualify as a deferred

investment property solely for business or

branch of the Federal Government and

exchange and any gain may be taxable in

investment property of a like kind, section

judicial officers of the Federal Government

the year you transferred the property.

1031 provides that no gain or loss is

use Part IV to elect to defer gain on

However, if the QI defaults on its

recognized. If, as part of the exchange,

conflict-of-interest sales. Judicial officers

obligation to acquire and transfer

you also receive other (not like-kind)

of the Federal Government are the

replacement property because of

property or money, gain is recognized to

following:

bankruptcy or receivership proceedings

the extent of the other property and money

1. Chief Justice of the United States.

and you meet certain requirements, you

received, but a loss is not recognized.

may be able to report the gain in the year

2. Associate Justices of the Supreme

Section 1031 does not apply to

or years payments are received. For the

Court.

exchanges of inventory, stocks, bonds,

requirements, see Rev. Proc. 2010-14,

3. Judges of the:

notes, other securities or evidence of

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

indebtedness, interests in a partnership,

a. United States courts of appeals,

certificates of trust or beneficial interests,

b. United States district courts,

Multi-asset exchanges. A multi-asset

or certain other assets. See section

including the district courts in Guam, the

exchange involves the transfer and receipt

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

Northern Mariana Islands, and the Virgin

of more than one group of like-kind

not apply to certain exchanges involving

Islands,

properties. For example, an exchange of

tax-exempt use property subject to a

c. Court of Appeals for the Federal

land, vehicles, and cash for land and

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

Circuit,

vehicles is a multi-asset exchange. An

If you exchanged stock in a

exchange of land, vehicles, and cash for

d. Court of International Trade,

mutual ditch, reservoir, or

land only is not a multi-asset exchange.

TIP

e. Tax Court,

irrigation company, see the

The transfer or receipt of multiple

Court of Federal Claims,

discussion later.

properties within one like-kind group is

also a multi-asset exchange. Special rules

g. Court of Appeals for Veterans

Like-kind property. Properties are of like

apply when figuring the amount of gain

Claims,

kind if they are of the same nature or

recognized and your basis in properties

h. United States Court of Appeals for

character, even if they differ in grade or

received in a multi-asset exchange. For

the Armed Forces, and

quality. Personal properties of a like class

details, see Regulations section

Any court created by Act of

are like-kind properties. However,

1.1031(j)-1.

Congress, the judges of which are entitled

livestock of different sexes are not

Reporting of multi-asset exchanges.

to hold office during good behavior.

like-kind properties. Also, personal

If you transferred and received (a) more

property used predominantly in the United

Multiple exchanges. If you made more

than one group of like-kind properties or

States and personal property used

than one like-kind exchange, you can file

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

predominantly outside the United States

only a summary Form 8824 and attach

do not complete lines 12 through 18 of

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

your own statement showing all the

Form 8824. Instead, attach your own

Sales and Other Dispositions of Assets,

information requested on Form 8824 for

statement showing how you figured the

for more details.

each exchange. Include your name and

realized and recognized gain, and enter

Real properties generally are of like

identifying number at the top of each page

the correct amount on lines 19 through 25.

kind, regardless of whether they are

of the statement. On the summary Form

Report any recognized gains on your

improved or unimproved. However, real

8824, enter only your name and identifying

Schedule D; Form 4797, Sales of

property in the United States and real

number, “Summary” on line 1, the total

Business Property; or Form 6252,

property outside the United States are not

recognized gain from all exchanges on

Installment Sale Income, whichever

like-kind properties.

applies.

Jun 16, 2014

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2014

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