Tax Basis and Realized Gain for 1031 Like-Kind Property Fill out form 8824 to report any gains from property given up, any cash received, the dates on which the property was exchanged, the adjusted basis from the property received, and any gains including non-recaptured gains. Use form 4797 to report the gain or loss from the exchange. Any short-term gains from the like-kind exchange will be reported on line 4, and any long term gains will be reported on line 11 of the schedule D attachment for the 1040 tax form. IRS tax rules call for filing forms 88, and any capital gains will be reported on schedule D of the capital gains return. In effect, 1031 exchanges defer the paying of gains tax to a future date instead of paying immediately. Note: financial securities and inventory do not qualify for like-kind exchanges. Like-kind property is determined to be property of the same economic use, no matter the value. ![]() A 1031 exchange is the exchange of so-called “like-kind” property the 1031 exchange tax can result as long-term gains, short-term capital gains or ordinary income.
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