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Here's how it works

01. Start with a blank Tax Free Exchange Legal Form
Open the blank document in the editor, set the document view, and add extra pages if applicable.
02. Add and configure fillable fields
Use the top toolbar to insert fields like text and signature boxes, radio buttons, checkboxes, and more. Assign users to fields.
03. Distribute your form
Share your Tax Free Exchange Legal Form in seconds via email or a link. You can also download it, export it, or print it out.

A detailed walkthrough of how to design your Tax Free Exchange Legal Form online

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Step 1: Start with DocHub's free trial.

Navigate to the DocHub website and register for the free trial. This gives you access to every feature you’ll need to build your Tax Free Exchange Legal Form without any upfront cost.

Step 2: Navigate to your dashboard.

Sign in to your DocHub account and proceed to the dashboard.

Step 3: Craft a new document.

Click New Document in your dashboard, and select Create Blank Document to craft your Tax Free Exchange Legal Form from the ground up.

Step 4: Use editing tools.

Insert different elements such as text boxes, radio buttons, icons, signatures, etc. Organize these elements to match the layout of your document and designate them to recipients if needed.

Step 5: Modify the form layout.

Rearrange your document easily by adding, repositioning, deleting, or merging pages with just a few clicks.

Step 6: Set up the Tax Free Exchange Legal Form template.

Turn your newly designed form into a template if you need to send many copies of the same document numerous times.

Step 7: Save, export, or distribute the form.

Send the form via email, distribute a public link, or even post it online if you want to collect responses from a broader audience.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.
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The IRSs 2-Year Holding Period Rule for 1031 Exchanges suggests that you hold your property for at least two years to meet the qualified use test. While theres no expressly stated rule, the IRS and tax advisors generally view two years as a safe holding period for properties obtained via these exchanges.
If sold, there is no capital gain or tax due. If the property is held and at the time of the sale, the property has appreciated over the value when it was received, a capital gain tax is triggered.
Construction or Improvement Exchange First, all exchange equity will need to be spent as a down payment or by making improvements to the property within 180 days. The taxpayer will need to receive the same property that was identified on the 45th day, which means that it cant change docHubly.
Failure to file this form and correctly report the required information can result in a reversal of your 1031 Exchange and potentially trigger penalties. This form must be completed and filed along with your tax return at the end of the tax year in which you sold your relinquished property and began your 1031 Exchange.
Taxpayers report exchanges on Form 8824, like-kind exchanges, attaching it to their returns. The form asks for: Descriptions of properties sold and purchased. Key dates including when the sold property was originally acquired and when the replacement property was identified and acquired.
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Related Q&A to Tax Free Exchange Legal Form

Section 1031(f) provides that if a Taxpayer exchanges with a related party then the party who acquired the property in the exchange must hold it for 2 years or the exchange will be disallowed.
Under IRC 1031, the following properties do not qualify for tax-deferred exchange treatment: Stock in trade or other property held primarily for sale (i.e. property held by a developer, flipper or other dealer) Securities or other evidences of indebtedness or interest. Stocks, bonds, or notes.
Purpose of Form Use Parts I, II, and III of Form 8824 to report each exchange of business or investment real property for real property of a like kind. Form 8824 figures the amount of gain deferred as a result of a like-kind exchange.

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