Form 8824; Like-Kind Exchanges

To add the Form 8824 Like-Kind Exchanges

Step 1. Log into your account at FileYourTaxes.com

Step 2. Select "Work With Filing"

Step 3. From the Navigation Page, select "Edit a Return in Progress"

Step 4. From the Summary Page, use the Search for a Form bar in the top-left and search for "Form 8824"

Description of property given up:

• • Enter a description of the property given up.

  • If real property give address 

  • If personal property give brief description. 

  • For both type, if the property is outside of the United States, also give the name of the country.

Description of property received:

• • Enter a description of the property received.

  • If real property give address

  • If personal property give brief description

  • For both type, if the property is outside of the United States, also give the name of the country.

Please indicate the type of property: A selection must be made here even if only Part IV is used.

The system will accommodate business property and capital assets.

• • Trade or Business Property held more than one year.

  • Trade or Business Property held one year or less.

  • Short Term Capital Asset.

  • Long Term Capital Asset.

Check here if this asset a 28% rate gain or loss capital asset?

• • Check this box even if only Part IV is used.

Date like-kind property given up was originally acquired:

• • Enter the date the like-kind property was originally acquired.

  • Please enter in the MM/DD/YYYY format. 

  • The month and day values must be two digits long. For example, enter 5 as 05. The year entered MUST have four digits. 

  • Please note that the system will not calculate or verify the validity of the statutory periods association with the identification and/or the receipt of the property.

Date you actually transferred your property to other party:

• • Enter the date you actually transferred  your property to the other party.

  • Please enter in the MM/DD/YYYY format. 

  • The month and day values must be two digits long. For example, enter 5 as 05. The year entered MUST have four digits. 

  • Please note that the system will not calculate or verify the validity of the statutory periods association with the identification and/or the receipt of the property.

Date like-kind property you received was identified:

• • Enter the date the like-kind property was identified.

  • Please enter in the MM/DD/YYYY format. 

  • The month and day values must be two digits long. For example, enter 5 as 05. The year entered MUST have four digits. 

  • Please note that the system will not calculate or verify the validity of the statutory periods association with the identification and/or the receipt of the property.

Date you actually received the like-kind property from other party:

• • Enter the date you actually received the like-kind property from other party.

  • Please enter in the MM/DD/YYYY format. 

  • The month and day values must be two digits long. For example, enter 5 as 05. The year entered MUST have four digits. 

  • Please note that the system will not calculate or verify the validity of the statutory periods association with the identification and/or the receipt of the property.

Was the exchange made with a related party?

• • If your answer is "NO", please skip Part II and provide answers for Part III.

Name of the related party:

• • Enter the name of the related party.

Related party information:

Taxpayer identification number

• • Business

  • Individual

Address of the related party

• • Enter the address of the related party.

  • To enter a foreign address, click the sentence "To enter a foreign address, click here. 

The relationship of the related party to you:

• • Enter the relationship of the related party.

During the tax year (and before the date that is 2 years after the last transfer of property that was part of the exchange), did the related party sell or dispose of the like-kind property received from you in exchange?

• • Select the applicable answer from the drop-down box. 

    • • Yes

      • No

During the tax year (and before the date that is 2 years after the last transfer of property that was part of the exchange), did you sell or dispose of the like-kind property you received?

• • Select the applicable answer from the drop-down box. 

    • • Yes

      • No

If you answered "YES" to either one of the questions above, please check one of the "exception" boxes below, if any apply.

• • If the disposition was after the death of either of the related parties.

  • If the disposition was an involuntary conversion and the threat of conversion occurred after the exchange.

  • If it can be established to the satisfaction of the Internal Revenue Service that neither the exchange nor the disposition had tax avoidance as its principal purpose. (You must provide a explanation when this box is checked).

  • Explanation for the last check box. 

Fair market value (FMV) of property you gave up which was not like-kind:

Adjusted basis of property you gave up which was not like-kind:

• • If you made entries here and the field above, please make sure you also report the gain or loss in the appropriate place of the return.

Cash received, FMV of other property received, plus net liabilities assumed by the other party reduced by any exchange expenses you incurred:

FMV of like-kind property you received:

Adjusted basis of like-kind property you gave up, net amounts paid to the other party, plus any exchange expenses not listed above:

Explanation for calculations, if any:

• • Be certain to read the instructions to this form prior to providing the explanation.

Ordinary income under recapture rules:

• • Ordinary income under recapture rules will need to be calculated by you separately. 

  • The system will not calculate these amounts and will not compare them with your Form 4797 entries.  

  • This amount will be carried to the required field on Form 4797.

  • DO NOT  include Section 179 amounts here. 

Certificate of divestiture number:

• • If you sell property at a gain according to a certificate of divestiture issued by the Office of Government Ethics (OGE) or the Judicial Conference of the United States (or its designee) enter the Certificate number here.

Description of divested property:

• • Enter here the description of the divested property.

Description of replacement property:

• • Enter a description of the replacement property here.

Date divested property was sold:

• • Enter the date the divested property was sold.  

  • The date format must be entered as MM/DD/YYYY. 

Sales price of divested property:

• • Enter the sales price of the divested property here.  

Basis of divested property:

• • Enter the basis (FMV) of the divested property here. 

Cost of replacement property purchased within 60 days after date of sale:

• • Enter here the cost of any replacement property purchased within 60 days after the date of sale.

  • You must recognize gain on the sale only to the extent that the amount realized on the sale is more than the cost of replacement property purchased within 60 days after the sale. 

  • If the property you sold was stock you acquired by exercising a statutory stock option, you may be treated as meeting the holding periods that apply to such stock, regardless of how long you actually held the stock. This may benefit you if you don't defer your entire gain, because it may allow you to treat the gain as a capital gain instead of ordinary income. For details, see section 421(d) or Pub. 525, Taxable and Nontaxable Income.

Ordinary income under recapture rules:

• • Ordinary income under recapture rules will need to be calculated by you separately. 

  • The system will not calculate these amounts and will not compare them with your Form 4797 entries.  

  • This amount will be carried to the required field on Form 4797.

  • DO NOT  include Section 179 amounts here.