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Department of the Treasury

Internal Revenue Service

Instructions for Form 8824

Like-Kind Exchanges

(and section 1043 conflict-of-interest sales)

page of the statement. On the summary

the transfer of the property given up. For

Section references are to the Internal

Form 8824, enter only your name and

a deferred exchange to qualify as

Revenue Code unless otherwise noted.

identifying number, “Summary” on line 1,

like-kind, you must comply with the

the total recognized gain from all

45-day written notice and receipt

What’s New

exchanges on line 23, and the total basis

requirements explained in the instructions

of all like-kind property received on line

for line 5 and line 6 on page 2.

25.

Exchange of stock in a mutual ditch,

Multi-asset exchanges. A multi-asset

reservoir, or irrigation company.

exchange involves the transfer and

When To File

Beginning with exchanges completed

receipt of more than one group of

after May 22, 2008, the exchange of stock

If during the current tax year you

like-kind properties. For example, an

in a mutual ditch, reservoir, or irrigation

transferred property to another party in a

exchange of land, vehicles, and cash for

company may qualify for the

like-kind exchange, you must file Form

land and vehicles is a multi-asset

nonrecognition of gain or loss under

8824 with your tax return for that year.

exchange. An exchange of land, vehicles,

section 1031. See Exchange of stock in a

Also file Form 8824 for the 2 years

and cash for land only is not a multi-asset

mutual ditch, reservoir, or irrigation

following the year of a related party

exchange. The transfer or receipt of

company, on page 2.

exchange (see the instructions for line 7

multiple properties within one like-kind

on page 2).

group is also a multi-asset exchange.

Special rules apply when figuring the

General Instructions

Like-Kind Exchanges

amount of gain recognized and your basis

in properties received in a multi-asset

Generally, if you exchange business or

exchange. For details, see Regulations

investment property solely for business or

Purpose of Form

section 1.1031(j)-1.

investment property of a like kind, section

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

1031 provides that no gain or loss is

Reporting of multi-asset exchanges.

report each exchange of business or

recognized. If, as part of the exchange,

If you transferred and received (a) more

investment property for property of a like

you also receive other (not like-kind)

than one group of like-kind properties or

kind. Certain members of the executive

property or money, gain is recognized to

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

branch of the Federal Government and

the extent of the other property and

do not complete lines 12 through 18 of

judicial officers of the Federal

money received, but a loss is not

Form 8824. Instead, attach your own

Government use Part IV to elect to defer

recognized.

statement showing how you figured the

gain on conflict-of-interest sales. Judicial

realized and recognized gain, and enter

Section 1031 does not apply to

officers of the Federal Government are

the correct amount on lines 19 through

exchanges of inventory, stocks, bonds,

the following:

25. Report any recognized gains on

notes, other securities or evidence of

1. Chief Justice of the United States.

Schedule D; Form 4797, Sales of

indebtedness, or certain other assets.

2. Associate Justices of the Supreme

Business Property; or Form 6252,

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

Court.

Installment Sale Income, whichever

section 1031 does not apply to certain

3. Judges of the:

applies.

exchanges involving tax-exempt use

a. United States courts of appeals,

Exchanges using a qualified exchange

property subject to a lease. See section

b. United States district courts,

accommodation arrangement (QEAA).

470(e)(4).

including the district courts in Guam, the

If property is transferred to an exchange

Like-kind property. Properties are of

Northern Mariana Islands, and the Virgin

accommodation titleholder (EAT) and

like kind if they are of the same nature or

Islands,

held in a QEAA, the EAT may be treated

character, even if they differ in grade or

c. Court of Appeals for the Federal

as the beneficial owner of the property,

quality. Personal properties of a like class

Circuit,

the property transferred from the EAT to

are like-kind properties. However,

d. Court of International Trade,

you may be treated as property you

livestock of different sexes are not

e. Tax Court,

received in an exchange, and the

like-kind properties. Also, personal

f. Court of Federal Claims,

property you transferred to the EAT may

property used predominantly in the United

g. Court of Appeals for Veterans

be treated as property you gave up in an

States and personal property used

Claims,

exchange. This may be true even if the

predominantly outside the United States

h. United States Court of Appeals for

property you are to receive is transferred

are not like-kind properties. See Pub.

the Armed Forces, and

to the EAT before you transfer the

544, Sales and Other Dispositions of

i. Any court created by Act of

property you are giving up. However, the

Assets, for more details.

Congress, the judges of which are entitled

property transferred to you cannot be

Real properties generally are of like

to hold office during good behavior.

treated as property received in an

kind, regardless of whether they are

exchange if you previously owned it within

improved or unimproved. However, real

Multiple exchanges. If you made more

180 days of its transfer to the EAT. For

property in the United States and real

than one like-kind exchange, you can file

details, see Rev. Proc. 2000-37 as

property outside the United States are not

only a summary Form 8824 and attach

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

like-kind properties.

your own statement showing all the

Proc. 2000-37 is on page 308 of Internal

information requested on Form 8824 for

Deferred exchanges. A deferred

Revenue Bulletin 2000-40 at

each exchange. Include your name and

exchange occurs when the property

pub/irs-irbs/irb00-40.pdf. Rev. Proc.

identifying number at the top of each

received in the exchange is received after

2004-51 is on page 294 of Internal

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2008

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