Kind Like Exchange Question 8824

[kzaccountingllc]

I have a client sold his rental property back in 12/8/18 and then bought another property to complete the kind like exchange process on 4/26/19 to the new property.  The property contain him and his girlfriend's name on it.  His girlfriend doesn't have any source of income and still in school.  In this case, is his girlfriend required to complete her own tax return with 8824 form attached on it or is it ok to file 8824 on my client's tax return only since his girlfriend is listed as a dependent on his tax return?

Also I want to confirm the 8824 form is only required to file when the exchange process completed on 4/26/19, meaning he won't need to file a 8824 form in 2018?

Thank You

[IRonMaN · Accepted solution]

Sold in 2018 and bought in 2019?  Did he receive the proceeds in 2018?  If so, you have a sale and another purchase, not a like kind exchange.

[kzaccountingllc]

My client didn't received any money for the sale of the property as he was doing the 1031 exchange with a company that he works with.  The old property was sold on 12/8/18 and the new property 1031 exchange was completed on 4/26/19.

[abctax55]

Is the 2018 return on extension?

[kzaccountingllc]

Yes, this is a 2018 return on extension.

[abctax55]

OK...who's the *ss that gave the no vote?
WHY do I bother with this place?

[TC07]

The question remains, how do you treat the sale at the end of the year, the funds given to an intermediary and the replacement done timely in the next year?  How do complete form 8824 and the replacement was two properties. ??

[abctax55]

You report it in the year the property given up is transferred to the intermediary.