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Revenue Bulletin 2004-33 at

2. The shares of stock in the company

The due date (including extensions) of

irb/2004-33_IRB/ar13.html.

have been recognized by the highest

your tax return for the year in which you

court in the state in which the company

transferred the property given up.

Property used as home. If the property

was organized or by an applicable statute

given up was owned and used as your

Line 7. Special rules apply to like-kind

of that state as constituting or

home during the 5-year period ending on

exchanges made with related parties,

representing real property or an interest in

the date of the exchange, you may be

either directly or indirectly. A related

real property.

able to exclude part or all of any gain

party includes your spouse, child,

figured on Form 8824. For details on the

grandchild, parent, grandparent, brother,

Additional information. For more

exclusion (including how to figure the

sister, or a related corporation, S

information on like-kind exchanges, see

amount of the exclusion), see Pub. 523,

corporation, partnership, trust, or estate.

section 1031 and its regulations and Pub.

Selling Your Home. Fill out Form 8824

See section 1031(f).

544.

according to its instructions, with these

An exchange made indirectly with a

exceptions:

related party includes:

•

1. Subtract line 18 from line 17.

An exchange made with a related party

Specific Instructions

Subtract the amount of the exclusion from

through an intermediary (such as a

the result. Enter that result on line 19. On

qualified intermediary or an exchange

Lines 1 and 2. For real property, enter

the dotted line next to line 19, enter

accommodation titleholder, as defined in

the address and type of property. For

“Section 121 exclusion” and the amount

Pub. 544), or

personal property, enter a short

•

of the exclusion.

An exchange made by a disregarded

description. For property located outside

2. On line 20, enter the smaller of:

entity (such as a single member limited

the United States, include the country.

a. Line 15 minus the exclusion, or

liability company) if you or a related party

Line 5. Enter on line 5 the date of the

b. Line 19.

owned that entity.

written notice that identifies the like-kind

Do not enter less than zero.

If the related party (either directly or

property you received in a deferred

3. Subtract line 15 from the sum of

indirectly) or you dispose of the property

exchange. To comply with the 45-day

lines 18 and 23. Add the amount of your

received in an exchange before the date

written notice requirement, the

exclusion to the result. Enter that sum on

that is 2 years after the last transfer of

following conditions must be met.

line 25.

property from the exchange, the deferred

1. The like-kind property you receive

gain or (loss) from line 24 must be

in a deferred exchange must be

Property used partly as home. If the

reported on your return for the year of

designated in writing as replacement

property given up was used partly as a

disposition (unless an exception on line

property either in a document you signed

home, you will need to use two separate

11 applies).

or in a written agreement signed by all

Forms 8824 as worksheets — one for the

parties to the exchange.

If you are filing this form for 1 of the 2

part of the property used as a home and

2. The document or agreement must

years following the year of the exchange,

one for the part used for business or

describe the replacement property in a

complete Parts I and II. If both lines 9 and

investment. Fill out only lines 15 through

clear and recognizable manner. Real

10 are “No,” stop.

25 of each worksheet Form 8824. On the

property should be described using a

worksheet Form 8824 for the part of the

If either line 9 or line 10 is “Yes,” and

legal description, street address, or

property used as a home, follow steps (1)

an exception on line 11 applies, check the

distinguishable name (for example,

through (3) above, except that instead of

applicable box on line 11, attach any

“Mayfair Apartment Building”).

following step (2), enter the amount from

required explanation, and stop. If no line

3. No later than 45 days after the date

line 19 on line 20. On the worksheet Form

11 exceptions apply, complete Part III.

you transferred the property you gave up:

8824 for the part of the property used for

Report the deferred gain or (loss) from

business or investment, follow steps (1)

a. You must send, fax, or hand deliver

line 24 on this year’s tax return as if the

through (3) above only if you can exclude

the document you signed to the person

exchange had been a sale.

at least part of any gain from the

required to transfer the replacement

An exchange structured to avoid the

exchange of that part of the property;

property to you (including a disqualified

related party rules is not a like-kind

otherwise, complete the form according to

person) or to another person involved in

exchange. Do not report it on Form 8824.

its instructions. Enter the combined

the exchange (other than a disqualified

Instead, you should report the disposition

amounts from lines 15 through 25 of both

person), or

of the property given up as if the

worksheet Forms 8824 on the Form 8824

b. All parties to the exchange must

exchange had been a sale. See section

you file. Do not file either worksheet Form

sign the written agreement designating

1031(f)(4). Such an exchange includes

8824.

the replacement property.

the transfer of property you gave up to a

More information. For details, see

qualified intermediary in exchange for

Generally, a disqualified person is

Rev. Proc. 2005-14 on page 528 of

property you received that was formerly

either your agent at the time of the

Internal Revenue Bulletin 2005-7 at www.

owned by a related party if the related

transaction or a person related to you. For

irs.gov/irb/2005-07_IRB/ar10.html.

party received cash or other (not

more details, see Regulations section

Exchange of stock in a mutual ditch,

like-kind) property for the property you

1.1031(k)-1(k).

reservoir, or irrigation company.

received, and you used the qualified

Note. If you received the replacement

Beginning with exchanges completed

intermediary to avoid the application of

property before the end of the 45-day

after May 22, 2008, the exchange of stock

the related party rules. See Rev. Rul.

period, you automatically are treated as

in a mutual ditch, reservoir, or irrigation

2002-83 for more details. You can find

having met the 45-day written notice

company may qualify for the

Rev. Rul. 2002-83 on page 927 of Internal

requirement. In this case, enter on line 5

nonrecognition of gain or loss under

Revenue Bulletin 2002-49 at

the date you received the replacement

section 1031.

pub/irs-irbs/irb02-49.pdf.

property.

The nonrecognition of gain or loss on

Line 11c. If you believe that you can

Line 6. Enter on line 6 the date you

the exchange may apply if, at the time of

establish to the satisfaction of the IRS

received the like-kind property from the

the exchange:

that tax avoidance was not a principal

other party.

1. The company is a section

purpose of both the exchange and the

501(c)(12)(A) organization (determined

The property must be received by the

disposition, attach an explanation.

without regard to the percentage of

earlier of the following dates.

Generally, tax avoidance will not be seen

•

income collected from members for the

The 180th day after the date you

as a principal purpose in the case of:

•

purpose of meeting losses and

transferred the property given up in the

A disposition of property in a

expenses), and

exchange.

nonrecognition transaction,

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Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2008 Page 2

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