Reporting your 1031 Exchange to the IRS

April 18, 2022 is tax filing day!

Did you do a 1031 Exchange in 2021 that you need to report? If so, you will be filling out an additional tax form for the year.

When you sell a property, the settlement agent will report that sale using Form 1099-S. This notifies the IRS that you sold property and there may be gain due. But for 1031 Exchangors, completing Form 8824 is how you notify the IRS that you completed a 1031 Exchange and may have deferred some (or all) of your tax liability.

A link to Form 8824 can be found here, https://www.irs.gov/pub/irs-pdf/f8824.pdf.

Instructions on how to complete Form 8824 can be found here, https://www.irs.gov/pub/irs-pdf/i8824.pdf.

Clients will often call us at tax time asking us to assist in the completion of this form. Unfortunately we cannot do this. As Qualified Intermediaries, we are precluded from giving tax advice and to help you complete this form would definitely be considered tax advice.

Please consult with your tax professional about how to complete this form by the April 18th due date.

For more information, please reach out to your tax professional for specific questions or contact the specialists here at Security 1st Exchange for assistance.