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IRS Publications:

NonTaxable Exchanges

Tax F.A.Q's Capital Gains

1031 Like-Kind Exchange

Like Kind - Capital Gains

HOW DO I REPORT MY 1031 EXCHANGE TO THE IRS?

Initially, your 1031 Exchange is reported on the IRS form 1099S which should indicate that you are effecting a 1031 Exchange and will receive property as consideration for the sale of your relinquished property. IRS Form 8824 must be completed as part of your annual federal return. In addition to determining your realized gain, recognized gain and your new basis, this form will ask the date you sold your relinquished property, identified and acquired your replacement property. Form 8824 is actually a supporting form for IRS Form 4797. The income received on rental properties must be reported on Schedule D of Form 1040.

WHAT ARE MY CHANCES OF BEING AUDITED?

The IRS currently audits approximately one (1)% of all returns. A 1031 Exchange is not likely to increase your chances of being audited.

Calculate Your Capital Gains Tax

JoAnne
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