Looking for a Form 8824 Templates? Download it for free!

Userid: SD_77WMB DTD instrx

Leadpct: 0%

Pt. size: 9

Draft

Ok to Print

PAGER/XML

Fileid:

(Init. & date)

D:\Users\77wmb\Documents\Form 8824\Instructions\2011\I8824.xml

Page 1 of 4 2011 Instructions for Form 8824

9:25 - 12-SEP-2011

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 8824

Like-Kind Exchanges

(and section 1043 conflict-of-interest sales)

Like-Kind Exchanges

However, if the QI defaults on its

Section references are to the Internal

obligation to acquire and transfer

Revenue Code unless otherwise noted.

Generally, if you exchange business or

replacement property because of

investment property solely for business or

bankruptcy or receivership proceedings

General Instructions

investment property of a like kind, section

and you meet certain requirements, you

1031 provides that no gain or loss is

may be able to report the gain in the year

recognized. If, as part of the exchange,

Purpose of Form

or years payments are received. For the

you also receive other (not like-kind)

requirements, see Rev. Proc. 2010-14,

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

property or money, gain is recognized to

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

the extent of the other property and

report each exchange of business or

gov/irb/2010-12_IRB/ar07.html.

investment property for property of a like

money received, but a loss is not

Multi-asset exchanges. A multi-asset

kind. Certain members of the executive

recognized.

exchange involves the transfer and

branch of the Federal Government and

Section 1031 does not apply to

judicial officers of the Federal

receipt of more than one group of

exchanges of inventory, stocks, bonds,

like-kind properties. For example, an

Government use Part IV to elect to defer

notes, other securities or evidence of

exchange of land, vehicles, and cash for

gain on conflict-of-interest sales. Judicial

indebtedness, or certain other assets.

officers of the Federal Government are

land and vehicles is a multi-asset

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

exchange. An exchange of land, vehicles,

the following:

section 1031 does not apply to certain

and cash for land only is not a multi-asset

1. Chief Justice of the United States.

exchanges involving tax-exempt use

exchange. The transfer or receipt of

2. Associate Justices of the Supreme

property subject to a lease. See section

multiple properties within one like-kind

Court.

470(e)(4).

group is also a multi-asset exchange.

3. Judges of the:

If you exchanged stock in a

Special rules apply when figuring the

a. United States courts of appeals,

mutual ditch, reservoir, or

TIP

amount of gain recognized and your basis

b. United States district courts,

irrigation company, see the

in properties received in a multi-asset

including the district courts in Guam, the

discussion later.

exchange. For details, see Regulations

Northern Mariana Islands, and the Virgin

section 1.1031(j)-1.

Like-kind property. Properties are of

Islands,

like kind if they are of the same nature or

c. Court of Appeals for the Federal

Reporting of multi-asset exchanges.

character, even if they differ in grade or

Circuit,

If you transferred and received (a) more

quality. Personal properties of a like class

d. Court of International Trade,

than one group of like-kind properties or

are like-kind properties. However,

e. Tax Court,

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

livestock of different sexes are not

f. Court of Federal Claims,

do not complete lines 12 through 18 of

like-kind properties. Also, personal

g. Court of Appeals for Veterans

Form 8824. Instead, attach your own

property used predominantly in the United

Claims,

statement showing how you figured the

States and personal property used

realized and recognized gain, and enter

h. United States Court of Appeals for

predominantly outside the United States

the correct amount on lines 19 through

the Armed Forces, and

are not like-kind properties. See Pub.

25. Report any recognized gains on

i. Any court created by Act of

544, Sales and Other Dispositions of

Schedule D; Form 4797, Sales of

Congress, the judges of which are entitled

Assets, for more details.

Business Property; or Form 6252,

to hold office during good behavior.

Real properties generally are of like

Installment Sale Income, whichever

kind, regardless of whether they are

applies.

Multiple exchanges. If you made more

improved or unimproved. However, real

than one like-kind exchange, you can file

Exchanges using a qualified exchange

property in the United States and real

only a summary Form 8824 and attach

accommodation arrangement (QEAA).

property outside the United States are not

your own statement showing all the

If property is transferred to an exchange

like-kind properties.

information requested on Form 8824 for

accommodation titleholder (EAT) and

Deferred exchanges. A deferred

each exchange. Include your name and

held in a QEAA, the EAT may be treated

identifying number at the top of each

exchange occurs when the property

as the beneficial owner of the property,

received in the exchange is received after

page of the statement. On the summary

the property transferred from the EAT to

Form 8824, enter only your name and

the transfer of the property given up. For

you may be treated as property you

identifying number, “Summary” on line 1,

a deferred exchange to qualify as

received in an exchange, and the

the total recognized gain from all

like-kind, you must comply with the timing

property you transferred to the EAT may

exchanges on line 23, and the total basis

requirements for identification and receipt

be treated as property you gave up in an

of all like-kind property received on line

of replacement property explained in the

exchange. This may be true even if the

25.

instructions for line 5 and line 6.

property you are to receive is transferred

If you make a deferred exchange using

to the EAT before you transfer the

When To File

a qualified intermediary (QI), the transfer

property you are giving up. However, the

If during the current tax year you

of the property given up and receipt of

property transferred to you cannot be

transferred property to another party in a

like-kind property is treated as a like-kind

treated as property received in an

like-kind exchange, you must file Form

exchange. If you fail to meet the timing

exchange if you previously owned it within

8824 with your tax return for that year.

requirements because of the QI, your

180 days of its transfer to the EAT. For

Also file Form 8824 for the 2 years

transaction will not qualify as a deferred

details, see Rev. Proc. 2000-37 as

following the year of a related party

exchange and any gain may be taxable in

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

exchange (see the instructions for line 7).

the year you transferred the property.

Proc. 2000-37 is on page 308 of Internal

Aug 05, 2011

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2011

Related Articles

Related forms

Related Categories