Hey, this is Evan Hutcheson. Today, I wanted to go over a 1031 exchange, also known as a like-kind exchange. It's a transaction usually related to real estate where the buyer and the seller swap properties in order to avoid paying capital gains taxes. You don't necessarily need to find someone to trade properties with. You can sell your property to a third party and keep the proceeds with a qualified intermediary. This is crucial because if the cash goes directly to you, the exchange is off. So, you need to make sure to find an attorney who will hold the funds until you purchase a new property. Then, you can use those funds to help in the purchase of a new property. You can do a 1031 exchange with any investment properties. For example, if you own a business and decide to sell your building to find a new one, you can do the exchange with the sale and purchase. If you rent property to someone as a landlord, you can also do a 1031 exchange. However, you cannot do it with residential real estate where you live. Additionally, if you're developing property, such as buying land, building a house, and immediately selling it, you cannot do a like-kind exchange. However, if you buy land, build a house, and start renting it out for a satisfactory rental term before selling it, you can potentially do a 1031 exchange. But, overall, it is mainly for investment properties. When doing a 1031 exchange, most people want to defer all capital gains because who wouldn't want to do that? However, there are circumstances where partial 1031 exchanges are possible. This happens when you purchase a house that is not as expensive as the one you sold, creating a "buy down." In this case, a...
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2018 8824 instructions Form: What You Should Know
Learn more about 1031 Exchanges, 1031 Exchange Tax, 1031 Tax Exchanges and U.S. Exchangers. Download our 1031 Exchange template with our complete answers below. For a complete listing on Form 926 exchanges, see Tax Tip: Form 926 Exchange FAQs. Download Excel file that gives you the exact values to enter if you have any of the following documents: IRS Form 8806 — U.S. Exchange Learn about IRS Form 8806 U.S. Exchange for a 1031 Exchange. 1989 a workbook, 8824 worksheets, and information paper from the U.S. tax department. IRS Form 8816 — U.S. Exchange IRS Form 8801 — Transfers of Property by a U.S. Person Other Than a U.S. Business Entity Use IRS Form 8801 to report sales and exchanges of property to the IRS in taxable years beginning after December 31, 1988. Download our Guide, IRS Form 8801 for the details. 1989 a workbook and 8824 worksheets, from the IRS. IRS Form 8801- Qualified Intermediary IRS Form 926 — Taxable Year Return of a U.S. Person Other Than a U.S. Business Entity Use IRS Form 926 to report taxable year returns of a person other than an American corporation for tax year 1988. For tax year 1988, the amount of the taxable income or gain, in respect of tax-free property transferred, from the transferor is the greatest of (a) 500,000 or (b) 100% of the amount of the taxable income or gain, in respect of tax-free property transferred, from the transferor. IRS Form 926- Qualified Intermediary IRS Form 1202 — Qualified U.S. Person Exchange Use IRS Form 1202 to report Qualified U.S. Person Exchange with respect to property or gain in exchange for which taxable year the taxpayer is the U.S. person, if the amount of taxable income or gain involved is 10,000 or more.
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