With tax season approaching, many taxpayers have questions about what they need to report and how they should go about doing so. This is especially true for taxpayers who have conducted a 1031 exchange in 2018. In this article, we will discuss how to appropriately report your 1031 exchange when you file your taxes for 2018.
Use Form 8824
First, to state the obvious. Yes, you do need to report your 1031 exchange to the IRS. You do so via form 8824, which tells the IRS where the net proceeds from your 1031 exchange went. When you sell a property, your title company or closing agent is required to report that to the IRS via form 1099. Filing form 8824 explains to the IRS that this sale was a 1031 exchange transaction.
Click on the link below to get a copy of form 8824:
Consult with Your CPA
You should consult with your CPA on all of this. If you haven’t already, inform them of your 1031 exchange and they will be able to help you report it in your tax filing. In fact, it’s a good idea to involve your CPA in the 1031 exchange process early on. They know your tax situation better than anyone and can advise you on how an exchange will impact your tax situation.
Get the Help You Need with Your 1031 Exchange
If you need help with the tax reporting requirements of your 1031 exchange – or anything else related to your like-kind exchange – contact CPEC1031, LLC today. Our qualified intermediaries have more than two decades of experience facilitating exchanges in all industries. We have the knowledge and expertise needed to walk you through your exchange. Contact us today at our office in downtown Minneapolis to set up a time to chat with one of our qualified intermediaries about your 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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