Instructions For Form 8824 - 2009 printable pdf download

2 0 09

Department of the Treasury

Internal Revenue Service

Instructions for Form 8824

Like-Kind Exchanges

(and section 1043 conflict-of-interest sales)

exchange (see the instructions for line 7

exchange. The transfer or receipt of

Section references are to the Internal

on page 2).

multiple properties within one like-kind

Revenue Code unless otherwise noted.

group is also a multi-asset exchange.

Like-Kind Exchanges

Special rules apply when figuring the

General Instructions

amount of gain recognized and your basis

Generally, if you exchange business or

in properties received in a multi-asset

investment property solely for business or

Purpose of Form

exchange. For details, see Regulations

investment property of a like kind, section

section 1.1031(j)-1.

1031 provides that no gain or loss is

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

recognized. If, as part of the exchange,

report each exchange of business or

Reporting of multi-asset exchanges.

you also receive other (not like-kind)

investment property for property of a like

If you transferred and received (a) more

property or money, gain is recognized to

kind. Certain members of the executive

than one group of like-kind properties or

the extent of the other property and

branch of the Federal Government and

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

money received, but a loss is not

judicial officers of the Federal

do not complete lines 12 through 18 of

recognized.

Government use Part IV to elect to defer

Form 8824. Instead, attach your own

gain on conflict-of-interest sales. Judicial

statement showing how you figured the

Section 1031 does not apply to

officers of the Federal Government are

realized and recognized gain, and enter

exchanges of inventory, stocks, bonds,

the following:

the correct amount on lines 19 through

notes, other securities or evidence of

25. Report any recognized gains on

1. Chief Justice of the United States.

indebtedness, or certain other assets.

Schedule D; Form 4797, Sales of

2. Associate Justices of the Supreme

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

Business Property; or Form 6252,

Court.

section 1031 does not apply to certain

Installment Sale Income, whichever

3. Judges of the:

exchanges involving tax-exempt use

property subject to a lease. See section

applies.

a. United States courts of appeals,

470(e)(4).

b. United States district courts,

Exchanges using a qualified exchange

including the district courts in Guam, the

Like-kind property. Properties are of

accommodation arrangement (QEAA).

Northern Mariana Islands, and the Virgin

like kind if they are of the same nature or

If property is transferred to an exchange

Islands,

character, even if they differ in grade or

accommodation titleholder (EAT) and

c. Court of Appeals for the Federal

quality. Personal properties of a like class

held in a QEAA, the EAT may be treated

Circuit,

are like-kind properties. However,

as the beneficial owner of the property,

d. Court of International Trade,

livestock of different sexes are not

the property transferred from the EAT to

e. Tax Court,

like-kind properties. Also, personal

you may be treated as property you

f. Court of Federal Claims,

property used predominantly in the United

received in an exchange, and the

g. Court of Appeals for Veterans

States and personal property used

property you transferred to the EAT may

Claims,

predominantly outside the United States

be treated as property you gave up in an

h. United States Court of Appeals for

are not like-kind properties. See Pub.

exchange. This may be true even if the

the Armed Forces, and

544, Sales and Other Dispositions of

property you are to receive is transferred

i. Any court created by Act of

Assets, for more details.

to the EAT before you transfer the

Congress, the judges of which are entitled

property you are giving up. However, the

Real properties generally are of like

to hold office during good behavior.

property transferred to you cannot be

kind, regardless of whether they are

treated as property received in an

improved or unimproved. However, real

Multiple exchanges. If you made more

exchange if you previously owned it within

property in the United States and real

than one like-kind exchange, you can file

180 days of its transfer to the EAT. For

property outside the United States are not

only a summary Form 8824 and attach

details, see Rev. Proc. 2000-37 as

like-kind properties.

your own statement showing all the

modified by Rev. Proc. 2004-51. Rev.

information requested on Form 8824 for

Deferred exchanges. A deferred

Proc. 2000-37 is on page 308 of Internal

each exchange. Include your name and

exchange occurs when the property

Revenue Bulletin 2000-40 at

identifying number at the top of each

received in the exchange is received after

page of the statement. On the summary

the transfer of the property given up. For

Rev. Proc. 2004-51, 2004-33 I.R.B. 294,

Form 8824, enter only your name and

a deferred exchange to qualify as

is available at

identifying number, “Summary” on line 1,

like-kind, you must comply with the timing

the total recognized gain from all

requirements for identification and receipt

exchanges on line 23, and the total basis

of replacement property explained in the

Property used as home. If the property

of all like-kind property received on line

instructions for line 5 and line 6 on page

given up was owned and used as your

25.

home during the 5-year period ending on

the date of the exchange, you may be

Multi-asset exchanges. A multi-asset

When To File

able to exclude part or all of any gain

exchange involves the transfer and

figured on Form 8824. For details on the

If during the current tax year you

receipt of more than one group of

exclusion (including how to figure the

transferred property to another party in a

like-kind properties. For example, an

amount of the exclusion), see Pub. 523,

like-kind exchange, you must file Form

exchange of land, vehicles, and cash for

Selling Your Home. Fill out Form 8824

8824 with your tax return for that year.

land and vehicles is a multi-asset

according to its instructions, with these

Also file Form 8824 for the 2 years

exchange. An exchange of land, vehicles,

following the year of a related party

and cash for land only is not a multi-asset

exceptions:

Cat. No. 12597K

Instructions For Form 8824 - 2009

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