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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 2922
Experience:  Over 20 Years experience
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help with form 8824

Customer Question

help with form 8824 Im enclosing additional info


Property A                                                                                


6 FAMILY HOUSE                                                                    


BOUGHT 03/21/2004                                          100% RENTAL             


     SOLD 12/31/2012                                                                


                                                                    900,000 SALE PRICE    


Initial cost                                             540,000                        


less depreciation taken                      146,740                        


                                                                                               


Satisfaction of mortgage                    193,000                        


                                                                                               


                                                                                   


Property B                                                                                


2 FAMILY HOUSE                                             100% RENTAL             


CONTRACT  FEB 10 2013                                                         


WILL CLOSE ON 4/29/2013                                940,000 PURCHASE PRICE      


 


                                                                                     280,000 NEW LOAN      

Submitted: 1 year ago.
Category: Tax
Expert:  R. Klein, EA replied 1 year ago.
Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.

I did not see an actual question there, so how may we help you today?
Customer: replied 1 year ago.

oops......I need to know how to fill in the form, I keep triying and each time get diferent results....this means it is not correct.....


Property A was sold and property B is in contract. According to IRS this qualifies as a Like kind exchange....


I just cant figure out the form....
I

Expert:  R. Klein, EA replied 1 year ago.

I am unable to fill out a form for you, but if you have a question about where a specific item goes or what a line instruction means, I will be glad to help.

 

 

Let me ask one very important question:

 

Was this sale and purchase done through a third-party agent? (Not your real estate agent)?

 

Or did you receive the money from the first sale and now you are putting it as a down payment on the new property?

 

 

 

Customer: replied 1 year ago.


Money was put on escrow account from day of sale. It was always the purpose to find another property.

Expert:  R. Klein, EA replied 1 year ago.

Did you have a 1031 agent in this transaction? I am concerned that you may nave an invalid exchange.

 

On the final HUD-1, who was the SELLER of record?

 

 

 

Customer: replied 1 year ago.

yes there is a IRS 1031 exchange trust agreement on file.


and Im concerned about lines 23 and 24 on form 8824

Expert:  R. Klein, EA replied 1 year ago.
Line 23 recognized gain means any money you took OUT of the deal and put it in your pocket. If all the gain is deferred, then the full amount is on Line 24
Customer: replied 1 year ago.

Im trying to open the return but internet is acting out.....

Expert:  R. Klein, EA replied 1 year ago.
?? I am not sure I can help with internet problems ??
Customer: replied 1 year ago.

ha, ha.....


 

Expert:  R. Klein, EA replied 1 year ago.
If I have resolved your issue, kindly provide a positive feedback rating so that we may close this question. Thanks
Customer: replied 1 year ago.

 


no you have not.....still cant figure out why I come up with a 0 on


line 24 deffered gain when the purchased property is 40 thousand more


than the selling price price of original property.


It took me a few minutes to open the return...


 


see below copy of my 8824 amounts


 


Line amount


15 432,111


16 940,000


17 1,372,111


18 1,333,260


19 38,851


20 38,851


21 0


22 38,851


23 38,851


24 0


25 940,000


 

Expert:  R. Klein, EA replied 1 year ago.
I think one of the keys is that you indicated you received 432111 in cash on Line 15. This indicates you actually received cash OUT of the deal. That would make the entire gain NOT tax deferred.
Customer: replied 1 year ago.


so what do I write there, nothing? I thought I was supposed to write there


the amount of $$ received after closing costs???


was this for any other additional cash received? so this should be zero....


am I correct now? (finally?)

Expert:  R. Klein, EA replied 1 year ago.
If all the money went to the escrow account and you got no cash at close, then this line SHOULD be 0 (Line 15). If you got cash, then it goes there.

Customer: replied 1 year ago.

yep, all the $$ went to the escrow acct.....


now the thing is how am I going to get it to zero....(line 15)....


I have to start all the calculations.....sh........


I hate this form.......


I do LLC's, (65+ fam buildings) corps, various states....


and this form of only 2 pages gave me such a hard time.....


I now feel dumb.....

Expert:  R. Klein, EA replied 1 year ago.
Sorry. Blame da guvmint.
Customer: replied 1 year ago.

yep, thanks. but can I leave this question open until I finish putting the numbers again for line 15? just in case I have (or create)more problems.


never used this service before, not too sure about the rules.....

Expert:  R. Klein, EA replied 1 year ago.
If we are done, you can rate the answer.

You can bookmark this page (save it in your browser favorites) and come back to it at any time. The question will be here for a year.
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 2922
Experience: Over 20 Years experience
R. Klein, EA and 4 other Tax Specialists are ready to help you
Customer: replied 1 year ago.

good morning,


just to let you know the form 8824 is finally finished....no more errors.


I made a few changes on the figures regarding regarding the sales expenses, etc...and still everything works fine.


That means I understand it and learned. I can do this again on my own..


OK I talk too much......


thanks for your help

Expert:  R. Klein, EA replied 1 year ago.

Good to hear it works now. To close this question, please remember to provide a rating as it is the only way the experts get credit for assisting you. Thank you.

 

You beat me to it....

 

 

 

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R. Klein, EA
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