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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 970
Experience:  Certified Public Accountant
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IRC§1031 Exchange Q. Please advise how is the IRC 1031

Customer Question

IRC§1031 ExchangeQ. Please advise how is the IRC 1031 exchange reported on the individual tax return? I am aware of the form 8824, which is for like kind exchange.a. Client Sold a apartment ( property) and deposited the money with Qualified intermediary.
b. Identified the property in 45 days
c. Closed on a new building within the time limit allowed and all the proceeds were paid directly to the new building owner by the QI.
d. I am also aware that the gain in the first property is to be adjusted by reducing the cost basis in the new property, but I want to be sure that there is no further reporting.Please provide IRS regulations and statutes if any other applicable.
Submitted: 1 month ago.
Category: Tax
Expert:  Barbara replied 1 month ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information contained in your question, it appears that you have a very good knowledge of the 1031 exchange.

Just to be sure,

The following link contains detailed information on reporting the 1031 exchange:

http://www.exeter1031.com/reporting_1031_exchange_for_income_taxes.aspx

The following link contains the IRS guidance:

https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 1 month ago.
Thanks you, but how do you report it on form 8824 when there two sets of transactions , one is for selling the property for cash/gain and second is when you buy a new property.I am aware of IRS link that you provided here and the other is non authoritative post. Please explain me by an example how I shall report these two transactions on form 8824 and defer the gain by adjusting the cost basis in the new property. I am willing to pay extra for your efforts.
Expert:  Barbara replied 1 month ago.

The "non-authoritative" link provides excellent information on how to report.

I will opt out so another expert can assist with step by step instructions.

Expert:  Mark Taylor replied 1 month ago.

Hi my name is Mark. I will be happy to help you with your questions. Please give me a moment to provide your response.

Customer: replied 1 month ago.
OK thanks, ***** ***** treat this as a new question and pay the enrolled agent for her help. She did the best possible. Please go ahead treating this a new question from me. Thanks
Expert:  Mark Taylor replied 1 month ago.

Unfortunately, I would not be able to treat this as a new credit. For Barbara to receive credit I would need to opt out and she would need to regain control over the question so that you could rate her. You would be the only one that would be able to start a new question.

Here is an excellent tool that I use to prepare form 8824. https://www.efirstbank1031.com/2accountantsInfo/10form8824.htm

If you go to this page there is a link to an excel spreadsheet that helps walk you through the preparation of form 8824.