if 1031 exchange and sale of the new property happened in one tax year, do i need to process form 8824

[SKukuryak]

1031 exchange and sale of the new property happened in one tax year, do i need to process form 8824. technicly do i eve need to do exchange in the tax return or do sch D for first and second property

[abctax55]

If the transaction really WAS a §1031 exchange, just using Sch D won't defer the gain.

So, "technically" yes, you need to do the F 8824 in the year the exchange originated.

[Just-Lisa-Now-]

Just selling and buying another property in the same year isnt a 1031 exchange.  

If you have a true 1031, you should see some paperwork from the intermediary that handled the money for the exchange.

[PATAX]

@Just-Lisa-Now- @abctax55 I think many taxpayers really do not understand the formalities, rules,  and complexities with this Exchange... They think they can just claim it and everything is okay...

[abctax55]

@PATAX - I agree...but @SKukuryak is a tax professional right, since s/he is posting in a tax professional forum.  Correct???

[SKukuryak]

thank you, that is what i was thinking, eventhou technically second sale waived 1031 benefits

[SKukuryak]

1031 for the sale of first property and purchase of second property was done properly by authorized agency. paperwork all godd. so there was thue 1031 exchange. 

[Just-Lisa-Now-]

Then you need the 8824 so IRS will recognize it as such.

[BobKamman]

I'm too lazy to look it up but what holding period is used for the replacement property -- does "long term" get carried over to it?

[SKukuryak]

holding period is a loop hole, there is no requirements in IRS publications, but suggested time is 12 month or until next tax filing. 

[PATAX]

@abctax55  👍 I agree with you and ask the same question sometimes... See my response to the $600 donation post from today...🐕☝️