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2012

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

How to get the latest information. For

General Instructions

the transfer of the property given up. For a

the latest information about this form and

deferred exchange to qualify as like-kind,

its instructions, go to

Future developments. For the latest

you must comply with the timing

form8824.

information about developments related to

requirements for identification and receipt

When To File

Form 8824 and its instructions, such as

of replacement property explained in the

legislation enacted after they were

instructions for line 5 and line 6.

If during the current tax year you

published, go to form8824.

If you make a deferred exchange using

transferred property to another party in a

a qualified intermediary (QI), the transfer

like-kind exchange, you must file Form

Purpose of Form

of the property given up and receipt of

8824 with your tax return for that year.

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

like-kind property is treated as a like-kind

Also file Form 8824 for the 2 years

report each exchange of business or

exchange. If you fail to meet the timing

following the year of a related party

investment property for property of a like

requirements because of the QI, your

exchange (see the instructions for line 7).

kind. Certain members of the executive

transaction will not qualify as a deferred

Like-Kind Exchanges

branch of the Federal Government and

exchange and any gain may be taxable in

judicial officers of the Federal Government

the year you transferred the property.

Generally, if you exchange business or

use Part IV to elect to defer gain on

However, if the QI defaults on its

investment property solely for business or

conflict-of-interest sales. Judicial officers

obligation to acquire and transfer

investment property of a like kind, section

of the Federal Government are the

replacement property because of

1031 provides that no gain or loss is

following:

bankruptcy or receivership proceedings

recognized. If, as part of the exchange,

and you meet certain requirements, you

1. Chief Justice of the United States.

you also receive other (not like-kind)

may be able to report the gain in the year

2. Associate Justices of the Supreme

property or money, gain is recognized to

or years payments are received. For the

Court.

the extent of the other property and money

requirements, see Rev. Proc. 2010-14,

received, but a loss is not recognized.

3. Judges of the:

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

irb/2010-12_IRB/ar07.html.

Section 1031 does not apply to

a. United States courts of appeals,

exchanges of inventory, stocks, bonds,

b. United States district courts,

Multi-asset exchanges. A multi-asset

notes, other securities or evidence of

including the district courts in Guam, the

exchange involves the transfer and receipt

indebtedness, or certain other assets. See

Northern Mariana Islands, and the Virgin

of more than one group of like-kind

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

Islands,

properties. For example, an exchange of

1031 does not apply to certain exchanges

land, vehicles, and cash for land and

c. Court of Appeals for the Federal

involving tax-exempt use property subject

vehicles is a multi-asset exchange. An

Circuit,

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

exchange of land, vehicles, and cash for

d. Court of International Trade,

land only is not a multi-asset exchange.

If you exchanged stock in a

e. Tax Court,

The transfer or receipt of multiple

mutual ditch, reservoir, or

TIP

properties within one like-kind group is

f. Court of Federal Claims,

irrigation company, see the

also a multi-asset exchange. Special rules

discussion later.

g. Court of Appeals for Veterans

apply when figuring the amount of gain

Claims,

Like-kind property. Properties are of like

recognized and your basis in properties

h. United States Court of Appeals for

kind if they are of the same nature or

received in a multi-asset exchange. For

the Armed Forces, and

details, see Regulations section

character, even if they differ in grade or

1.1031(j)-1.

i. Any court created by Act of

quality. Personal properties of a like class

Congress, the judges of which are entitled

are like-kind properties. However,

Reporting of multi-asset exchanges.

to hold office during good behavior.

livestock of different sexes are not

If you transferred and received (a) more

like-kind properties. Also, personal

Multiple exchanges. If you made more

than one group of like-kind properties or

property used predominantly in the United

than one like-kind exchange, you can file

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

States and personal property used

only a summary Form 8824 and attach

do not complete lines 12 through 18 of

predominantly outside the United States

your own statement showing all the

Form 8824. Instead, attach your own

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

information requested on Form 8824 for

statement showing how you figured the

Sales and Other Dispositions of Assets,

each exchange. Include your name and

realized and recognized gain, and enter

for more details.

identifying number at the top of each page

the correct amount on lines 19 through 25.

Real properties generally are of like

of the statement. On the summary Form

Report any recognized gains on

kind, regardless of whether they are

8824, enter only your name and identifying

Schedule D; Form 4797, Sales of

improved or unimproved. However, real

number, “Summary” on line 1, the total

Business Property; or Form 6252,

property in the United States and real

recognized gain from all exchanges on

Installment Sale Income, whichever

property outside the United States are not

applies.

like-kind properties.

Jun 21, 2012

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2012

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