What is Form 8824?
Form 8824, titled Like-Kind Exchange, is used to report property exchanges that qualify under IRS rules. Its main purpose is to defer taxes on capital gains when you swap one investment property for another similar one. This form helps ensure you meet tax requirements and avoid unexpected tax liabilities. Completing it correctly is vital for anyone engaged in real estate transactions, as it can impact your tax obligations significantly. Always consult the IRS guidelines to ensure compliance.
What is Form 8824 used for?
Form 8824 is used by taxpayers to report like-kind exchanges of property. Here’s what it helps you do:
- to report the exchange of qualifying properties.
- to calculate gain or loss on the exchange.
- to defer paying taxes on the exchanged properties.
How to fill out Form 8824?
- 1
Locate the top of Form 8824 and fill in your name, Social Security number, and address.
- 2
Complete Part I by providing details about the like-kind exchange, including the properties involved.
- 3
Fill out Part II with information about the exchanger and the exchange period.
- 4
Answer all applicable questions in Part III and IV.
- 5
Review your entries for accuracy.
- 6
Download the completed form for submission with your tax return.
Who is required to fill out Form 8824?
Form 8824 is completed by taxpayers who have engaged in a like-kind exchange of business or investment real property. This includes individuals, partnerships, corporations, and other entities involved in such exchanges.
Afterward, the form is used by those who have deferred gain or loss from a like-kind exchange during the tax year.
When is Form 8824 not required?
Form 8824 is not necessary if no like-kind exchange happened during the tax year.
Also, individuals exchanging personal property do not require this form, as like-kind exchanges now typically apply only to real estate. Lastly, if a transaction does not meet IRS criteria for a like-kind exchange, filing this form is not needed.
When is Form 8824 due?
The deadline for Form 8824, Like-Kind Exchange, is with the tax return for the year in which the exchange occurred. It must be filed by the due date of the tax return, including any extensions, for that year.
If the exchange involves properties across two tax years, you may need to file an extension to provide complete information after receiving the replacement property. Always ensure you check the latest guidelines from the IRS for any updates.
How to get a blank Form 8824?
To get a blank Form 8824, you can access it directly through our platform. The IRS issues this form, and we have a pre-loaded version ready for you to fill out and download. Remember, our website does not support filing forms.
Do you need to sign Form 8824?
Form 8824, Like-Kind Exchange, does not require a signature. This form serves as a reporting document that you submit with your tax return. For the most accurate and updated information, it's wise to check the latest updates from the IRS. With PDF Guru, you can fill out the form, download it for your records, and handle any additional tasks outside our platform. Remember, we do not assist with submission.
Where to file Form 8824?
Form 8824 must be submitted to the Internal Revenue Service (IRS).
Submission methods: online or mail.
