Reporting Like-Kind Exchanges

Like-kind exchanges are less common than they used to be, but they often involve large sums of money and high expectations. In this session, we’ll walk through how to confirm if a transaction qualifies, including which replacement property may be substituted for the property relinquished. We’ll cover a practical process for preparing Form 8824, Like-Kind Exchanges, including how to compute realized gain, recognized gain and deferred gain. Finally, we’ll cover how boot, exchange expenses and debt relief affect the calculation.

Objectives

Upon completion of this session, you will be able to:

• Identify the requirements for a qualifying §1031 like-kind exchange
• Determine when Form 8824 is required
• Compute realized gain, recognized gain and deferred gain
• Apply the rules for boot, exchange expenses and liability relief to determine the correct recognized gain and basis in the replacement property
• Determine how to report the exchange results on the appropriate form

CPE