Get 1996 Instructions For 8824. Like-kind Exchanges

In a standard 1031 exchange, you need to reinvest 100% of the proceeds from the sale of your relinquished property to defer all capital gains taxes. Partial 1031 Exchange | Requirements & Rules 1031crowdfunding.com https://.1031crowdfunding.com › 1031-exchange-r... 1031crowdfunding.com https://.1031crowdfunding.com › 1031-exchange-r...

It is extremely important that you file an extension of time to file your Federal income tax return, then complete your 1031 exchange transaction, and finally file your Federal income tax return and report your 1031 exchange transaction on IRS Form 8824 if your 1031 exchange transaction straddles two (2) income tax ...

Include your name and identifying number at the top of each page of the statement. On the summary Form 8824, enter only your name and identifying number, “Summary” on line 1, the total recognized gain from all exchanges on line 23, and the total basis of all like-kind property received on line 25.

Generally, if you make a like-kind exchange, you are not required to recognize a gain or loss under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, you must recognize a gain to the extent of the other property and money received.

What Qualifies as Like-Kind Property? To defer paying capital gains taxes using a 1031 like-kind exchange, your replacement property must be of the same kind as the property sold. You also must hold both properties for business, productive use in a trade, or investment (26 U.S.C. Like-Kind Property: What Qualifies and What Doesn't 1031Gateway https://.1031gateway.com › 1031-exchange-basics 1031Gateway https://.1031gateway.com › 1031-exchange-basics

The taxpayer and the related party must hold the properties that each received as part of the 1031 Exchange transaction for a minimum of two (2) years. The two (2) year holding period starts running on the date of the transfer or conveyance of the last property involved in the 1031 Exchange related party transaction.