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Your 1031 exchange must be reported by completing Form 8824 and filing it along with your federal income tax return. If you completed more than one exchange, a different form must be completed for each exchange.
With your return open in TurboTax, search for like kind (2 words, no dash) and then click the "Jump to" link at the top of your search results. This will take you to Any Other Property Sales? Check the second-to-last box from the bottom for like-kind and section 1031 exchanges and click Continue.
Each owner is considered to have an individual, undivided interest in a property. Therefore, owners can buy, sell, or place their property in a 1031 exchange without regard to the actions of the others. The other answer choices \u2014 bonds, stocks, and business partnerships \u2014 are not allowed under Section 1031 regulations.
Use of a like-kind exchange is appropriate in myriad situations. For example, investors may relinquish a single-family home in exchange for an apartment building, a warehouse in exchange for an office building, or one investment property for multiple properties.
Key Takeaways. IRS Form 8949 is used to report capital gains and losses from investments for tax purposes. The form segregates short-term capital gains and losses from long-term ones. Filing this form also requires a Schedule D and a Form 1099-B, which is provided by brokerages to taxpayers.
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Line 1: List the address or legal description and type of property relinquished (sold). Line 2: List the address or legal description and type of property received. Line 3: List the month, day, year relinquished property was originally acquired. Line 4: List the date relinquished property was transferred to the buyer.
HOW TO REPORT THE EXCHANGE. Your 1031 exchange must be reported by completing Form 8824 and filing it along with your federal income tax return. If you completed more than one exchange, a different form must be completed for each exchange.
There's no limit on the number of times you can do a 1031 exchange because qualified intent is how you will be judged. The IRS provides some guidance, but there is no rule to guarantee taxpayer safety. By working with a Qualified Intermediary, you can build your case for intent for a smooth, successful exchange.
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, \u201cflipper\u201d or other dealer) Securities or other evidences of indebtedness or interest. Stocks, bonds, or notes.
Under the Tax Cuts and Jobs Act, Section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property. An exchange of real property held primarily for sale still does not qualify as a like-kind exchange.

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