There is a worksheet (IRS form 8824) that the taxpayer (or their tax preparer) needs to fill out for any 1031 exchange conducted during the year of the tax filing. Form 8824 connects the dots between the relinquished property and the replacement property. It also asks some additional, often complicated or confusing, questions. This is something you need to discuss in detail with your CPA, accountant, or tax preparer. The qualified intermediary is not allowed to “wear two hats” and help with this form. The intermediary can’t be an independent third party if they’re also acting as your tax preparer.
We always recommend that clients take a look at form 8824 before they begin their transaction because it’s a nice way to look at the exchange in reverse. It allows you to see how the transaction will ultimately be reported to the IRS.
CPEC1031, LLC – Qualified Intermediaries for Any 1031 Exchange
At CPEC1031, LLC we have qualified intermediaries available to help with any type of 1031 exchange – from forward exchanges to reverse exchanges and everything in between. With more than twenty years of experience, our team is standing by to guide you through all the ins and outs of the like-kind exchange process. We have helped countless taxpayers just like you defer their capital gains taxes on the sale of qualifying real estate. Contact us today to learn more about the services we offer and how we can help you with your next 1031 exchange.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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