How to Fill Out Form 8824

by Amanda Talbert ; Updated July 27, 2017

Items you will need

  • Adobe Acrobat for Windows
  • Printer
  • Tax information
  • Property information

The form 8824 from the Internal Revenue Service is a form for like-kind exchanges, or exchange of properties that are of the same type, such as businesses or vehicles.

Filling Out the Form

Step 1

Make sure the computer has Adobe Acrobat, so that Form 8824 can be filled out online. Adobe Acrobat can be downloaded from the Adobe website (see resources).

Step 2

On the internet, go to the Internal Revenue Service homepage and click on "Forms and Publications." After that, click on "Download forms and publications by: Form and Instruction number." In the search field, enter "8824," which is the form number to fill out. Click on the appropriate link to open the form.

Step 3

Look at the paperwork of the exchange in question. For Part I, the information that needs to be filled out will center around the actual exchange. A description of the property exchanged needs to be provided. Dates for when the property was first gained and then transferred should be noted, as well as the date a written notice was completed for the transfer and the actual date of transfer.

Step 4

Fill out Part II as necessary. This section will need to be filled out only if the exchange was made between two people who are related. If lines 9 and 10 can both be answered "No" and the exchange was not made in the present tax year, the rest of the form does not need to be completed. If lines 9 or 10 are answered "Yes" and any exception on line 11 can be applied, the explanation of that exception should be attached to the form, and the rest of the form does not need to be completed.

Step 5

Report the gain or loss by filling out Part III only if lines 9 and 10 in part II were answered "Yes" with no exceptions. If, in addition to the like-kind property exchange, you also gave up other property, fill out lines 12 through 14. Line 17 should be the product of line 15 and 16, which will be the sum of money you were paid subtracted by any expenses you had throughout the process. The information put on lines 18 through 20 and 22 through 25 should follow the mathematical instructions given. Form 4797 will contain the information needed to be applied to line 21.

Step 6

Complete Part IV only if the replacement property cost more than the basis of the sold property, and you want to defer the gain. Enter all of the information requested, including the sold date and sales price, and complete any mathematical instructions.

Step 7

Print out completed form. Attach to your tax return and submit at the appropriate time.

Tips

  • If you made more than one exchange of this kind, you can file one summary Form 8824 and attach a statement showing the information on Form 8824 for each individual exchange. Simply include your name and identifying tax number at the top of each page.

Warnings

  • All forms filled out should be thoroughly checked by a tax professional before sending to the IRS.

About the Author

Amanda Talbert is a part-time office manager, domestic violence counselor and freelance writer. She enjoys writing articles pertaining to the home and garden, or medical issues. Her articles can primarily be found on ehow.com.