Instructions For Form 8824 - 2009


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
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,
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
a. United States courts of appeals,
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
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
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
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
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
Cat. No. 12597K


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