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2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 8824

Like-Kind Exchanges

(and section 1043 conflict-of-interest sales)

your own statement showing all the

predominantly outside the United States

Section references are to the Internal Revenue

Code unless otherwise noted.

information requested on Form 8824 for

are not like-kind properties. See Pub. 544,

each exchange. Include your name and

Sales and Other Dispositions of Assets,

General Instructions

identifying number at the top of each page

for more details.

of the statement. On the summary Form

Generally, real properties are like-kind

Future developments. For the latest

8824, enter only your name and identifying

properties, regardless of whether they are

information about developments related to

number, “Summary” on line 1, the total

improved or unimproved. However, real

Form 8824 and its instructions, such as

recognized gain from all exchanges on

property in the United States and real

legislation enacted after they were

line 23, and the total basis of all like-kind

property outside the United States aren't

published, go to IRS.gov/Form8824.

property received on line 25.

like-kind properties.

Purpose of Form

When To File

Deferred exchanges. A deferred

exchange occurs when the property

Use Parts I, II, and III of Form 8824 to

If during the current tax year you

received in the exchange is received after

report each exchange of business or

transferred property to another party in a

the transfer of the property given up. For a

investment property for property of a like

like-kind exchange, you must file Form

deferred exchange to qualify as like kind,

kind. Form 8824 figures the amount of

8824 with your tax return for that year.

you must comply with the timing

gain deferred as a result of a like-kind

Also file Form 8824 for the 2 years

requirements for identification and receipt

exchange. Part III computes the amount of

following the year of a related party

of replacement property. The replacement

gain required to be reported on the tax

exchange. See the instructions for

Line

property for the exchange must be

return in the current year if cash or

later, for details.

identified within 45 days after the property

property that isn't like kind is involved in

being given up is transferred. The

Like-Kind Exchanges

the exchange. Also, the basis of the

replacement property must be received

like-kind property received is figured on

Generally, if you exchange business or

within 180 days, or by the due date of the

Form 8824.

investment property solely for business or

tax return including extensions, whichever

Certain members of the executive

investment property of a like kind, section

is earlier. See the instructions for

Line 5

branch of the Federal Government and

1031 provides that no gain or loss is

and

Line

6, later, for more details.

judicial officers of the Federal Government

recognized. If, as part of the exchange,

If you make a deferred exchange using

use Part IV to elect to defer gain on

you also receive other (not like-kind)

a qualified intermediary (QI), the transfer

conflict-of-interest sales. Judicial officers

property or money, gain is recognized to

of the property given up and receipt of

of the Federal Government are the

the extent of the other property and money

like-kind property is treated as a like-kind

following:

received, but a loss isn't recognized.

exchange. If you fail to meet the timing

1. Chief Justice of the United States.

requirements because of the QI, your

Section 1031 doesn’t apply to

transaction won't qualify as a deferred

2. Associate Justices of the Supreme

exchanges of inventory, stocks, bonds,

Court.

exchange and any gain may be taxable in

notes, other securities or evidence of

the year you transferred the property.

indebtedness, interests in a partnership,

3. Judges of the:

However, if the QI defaults on its

certificates of trust or beneficial interests,

a. United States courts of appeals,

obligation to acquire and transfer

or certain other assets. See section

b. United States district courts,

replacement property because of

1031(a)(2). In addition, section 1031

including the district courts in Guam, the

bankruptcy or receivership proceedings

doesn't apply to certain exchanges

Northern Mariana Islands, and the Virgin

and you meet certain requirements, you

involving tax-exempt use property subject

Islands,

may be able to report the gain in the year

to a lease. See section 470(e)(4).

or years payments are received. For the

c. Court of Appeals for the Federal

If you exchanged stock in a

requirements, see Rev. Proc. 2010-14,

Circuit,

mutual ditch, reservoir, or

2010-12 I.R.B. 456, available at

TIP

d. Court of International Trade,

irrigation company, see the

discussion later.

e. Tax Court,

Multi-asset exchanges. A multi-asset

Court of Federal Claims,

exchange involves the transfer and receipt

Like-kind property. Properties are of like

g. Court of Appeals for Veterans

of more than one group of like-kind

kind if they are of the same nature or

Claims,

properties. For example, an exchange of

character, even if they differ in grade or

land, vehicles, and cash for land and

quality. Personal properties of a like class

h. United States Court of Appeals for

vehicles is a multi-asset exchange. An

are like-kind properties.

the Armed Forces, and

exchange of land, vehicles, and cash for

Property that is exchanged for a

Any court created by Act of

land only isn't a multi-asset exchange. The

different type of property or class of

Congress, the judges of which are entitled

transfer or receipt of multiple properties

property won't qualify as like-kind

to hold office during good behavior.

within one like-kind group is also a

property. Livestock of different sexes are

multi-asset exchange. Special rules apply

Multiple exchanges. If you made more

not like-kind properties. Also, personal

when figuring the amount of gain

than one like-kind exchange, you can file a

property used predominantly in the United

recognized and your basis in properties

summary on one Form 8824 and attach

States and personal property used

Sep 26, 2017

Cat. No. 12597K

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2017

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