How to use or fill out 2015 Form 8824 - IRS with DocHub
- Click ‘Get Form’ to open it in the editor.
- Begin with Part I, where you will provide information on the like-kind exchange. Fill in the descriptions of the property given up and received in lines 1 and 2.
- Enter the dates for when you acquired the property, transferred it, identified it, and received it in lines 3 through 6. Ensure these dates are accurate as they are crucial for compliance.
- In line 7, indicate whether the exchange involved a related party by selecting 'Yes' or 'No'. If 'Yes', proceed to Part II.
- Complete Part II if applicable, providing details about the related party and any transactions that occurred within two years post-exchange.
- Move to Part III to calculate realized gain or loss. Carefully fill out lines 12 through 25 based on your transactions and ensure all calculations are correct.
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What documentation is required for a 1031 exchange?
Essential Documents Needed for Initiating a 1031 Exchange Before initiating a 1031 exchange, investors should gather the following essential documentation: Property ownership documents. Tax returns and financial statements. Property title and deed.
What paperwork is needed for a 1031 exchange?
Essential Documents Needed for Initiating a 1031 Exchange Property ownership documents. Tax returns and financial statements. Property title and deed. Purchase agreement and closing statement.
What qualifies a property for a 1031 exchange?
The exchange must involve real property kept for productive use in a business, trade, or for investment, and cannot involve property held primarily for sale. (Ibid.) Under the Same Taxpayer Rule, the seller of the relinquished property must be the same individual buyer the replacement property.
What form do I need for a 1031 exchange?
Form 8824 is used to report like-kind exchanges of business or investment propertywhen you immediately buy a similar property to replace what you soldunder IRS Section 1031. It helps you calculate deferred gains and track basis adjustments.
How much does it cost to do a 1031 exchange?
The IRS statute requires that you use a qualified intermediary (QI) to perform your 1031 exchange. While it is possible for an attorney to provide this service, it doesnt have to be an attorney and it cant be an attorney you have utilized for any other matters.
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Who needs to file form 8824?
Form 8824 is used to report like-kind exchanges of business or investment propertywhen you immediately buy a similar property to replace what you soldunder IRS Section 1031.
Is it better to do a 1031 exchange or pay the taxes?
Key Takeaways. A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of a business or investment property into a new, like-kind property. The replacement property in a 1031 exchange should be of equal or greater value to avoid paying taxes immediately.