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at least part of any gain from the exchange

a. You send, fax, or hand deliver the

Exchanges using a qualified exchange

of that part of the property; otherwise,

document you signed to the person

accommodation arrangement (QEAA).

complete the form according to its

required to transfer the replacement

If property is transferred to an exchange

instructions. Enter the combined amounts

property to you (including a disqualified

accommodation titleholder (EAT) and held

from lines 15 through 25 of both

person) or to another person involved in

in a QEAA, the EAT may be treated as the

worksheet Forms 8824 on the Form 8824

the exchange (other than a disqualified

beneficial owner of the property, the

you file. Do not file either worksheet Form

person), or

property transferred from the EAT to you

8824.

may be treated as property you received

b. All parties to the exchange sign the

in an exchange, and the property you

written agreement designating the

More information. For details, see

transferred to the EAT may be treated as

replacement property.

Rev. Proc. 2005-14, 2005-7 I.R.B. 528,

property you gave up in an exchange. This

available at

Generally, a disqualified person is

may be true even if the property you are to

ar10.html.

either your agent at the time of the

receive is transferred to the EAT before

transaction or a person related to you. For

Exchange of stock in a mutual ditch,

you transfer the property you are giving

more details, see Regulations section

reservoir, or irrigation company. The

up. However, the property transferred to

1.1031(k)-1(k).

exchange of stock in a mutual ditch,

you cannot be treated as property

reservoir, or irrigation company may

received in an exchange if you previously

Note. If you received the replacement

qualify for the nonrecognition of gain or

owned it within 180 days of its transfer to

property before the end of the 45-day

loss under section 1031.

the EAT. For details, see Rev. Proc.

period, you automatically are treated as

2000-37 as modified by Rev. Proc.

The nonrecognition of gain or loss on

having met the 45-day written

2004-51. Rev. Proc. 2000-37 is on

the exchange may apply if, at the time of

identification requirement. In this case,

page 308 of Internal Revenue Bulletin

the exchange:

enter on line 5 the date you received the

2000-40 at

1. The company is a section 501(c)

replacement property.

irb00-40.pdf. Rev. Proc. 2004-51, 2004-33

(12)(A) organization (determined without

Line 6. Enter on line 6 the date you

I.R.B. 294, is available at

regard to the percentage of income

2004-33_IRB/ar13.html.

received the like-kind property from the

collected from members for the purpose of

other party.

meeting losses and expenses), and

Property used as home. If the property

The property must be received by the

given up was owned and used as your

2. The shares of stock in the company

earlier of the following dates.

home for at least a total of two years

have been recognized by the highest court

The 180th day after the date you

during the 5-year period ending on the

in the state in which the company was

transferred the property given up in the

date of the exchange, you may be able to

organized or by an applicable statute of

exchange.

exclude part or all of any gain figured on

that state as constituting or representing

The due date (including extensions) of

Form 8824. For details on the exclusion

real property or an interest in real property.

your tax return for the year in which you

(including how to figure the amount of the

transferred the property given up.

exclusion), see Pub. 523, Selling Your

Additional information. For more

Home. Fill out Form 8824 according to its

information on like-kind exchanges, see

Line 7. Special rules apply to like-kind

instructions, with these exceptions:

section 1031 and its regulations and Pub.

exchanges made with related parties,

544.

1. Subtract line 18 from line 17. Enter

either directly or indirectly. A related party

that result on line 19. On the dotted line

includes your spouse, child, grandchild,

Specific Instructions

next to line 19, enter “Section 121

parent, grandparent, brother, sister, or a

exclusion” and the amount of the

related corporation, S corporation,

exclusion.

Lines 1 and 2. For real property, enter

partnership, trust, or estate. See section

the address and type of property. For

1031(f).

2. On line 20, enter the smaller of:

personal property, enter a short

An exchange made indirectly with a

a. Line 15 minus the exclusion, or

description. For property located outside

related party includes:

b. Line 19.

the United States, include the country.

An exchange made with a related party

Do not enter less than zero.

through an intermediary (such as a

Line 5. Enter on line 5 the date of the

qualified intermediary or an exchange

3. Subtract line 15 from the sum of

written identification of the like-kind

accommodation titleholder, as defined in

lines 18 and 23. Add the amount of your

property you received in a deferred

Pub. 544), or

exclusion to the result. Enter that sum on

exchange. To comply with the 45-day

line 25.

written identification requirement, the

An exchange made by a disregarded

entity (such as a single member limited

following conditions must be met.

Property used partly as home. If the

liability company) if you or a related party

1. The like-kind property you receive

property given up was used partly as a

owned that entity.

in a deferred exchange is designated in

home, you will need to use two separate

writing as replacement property either in a

If you or the related party (either

Forms 8824 as worksheets—one for the

directly or indirectly) dispose of property

document you signed or in a written

part of the property used as a home and

received in an exchange before the date

agreement signed by all parties to the

one for the part used for business or

that is 2 years after the last transfer which

exchange.

investment. Fill out only lines 15 through

was part of the exchange, the deferred

25 of each worksheet Form 8824. On the

2. The document or agreement

gain or (loss) from line 24 must be

worksheet Form 8824 for the part of the

describes the replacement property in a

reported on your return for the year of

property used as a home, follow steps (1)

clear and recognizable manner. Real

disposition (unless an exception on line 11

through (3) above, except that instead of

property should be described using a legal

applies).

following step (2), enter the amount from

description, street address, or

line 19 on line 20. On the worksheet Form

distinguishable name (for example,

If you are filing this form for 1 of the 2

8824 for the part of the property used for

“Mayfair Apartment Building”).

years following the year of the exchange,

business or investment, follow steps (1)

complete Parts I and II. If both lines 9 and

3. No later than 45 days after the date

10 are “No,” stop.

through (3) above only if you can exclude

you transferred the property you gave up:

2014 Instructions for Form 8824

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Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2014 Page 2

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