Reporting your 1031 Exchange to the IRS

April 15, 2025 is tax filing day!

Did you do a 1031 Exchange in 2024 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 gains due. But for 1031 Exchangors, completing Form 8824 notifies the IRS you completed a 1031 Exchange and may have deferred some (or all) of your tax liability.

You can access Form 8824 using the link provided above and can find instructions on how to complete Form 8824 by clicking here.

Clients will often call us at tax time asking us to assist in the completion of this form. Unfortunately, as a Qualified Intermediary (QI), we are precluded from giving tax advice, and by helping you complete this form is considered tax advice. Please consult with your tax professional about how to complete this form by the April 15th due date.

Lastly, if your 1031 Exchange started in 2024 and will not be completed by April 15th, you will most likely need to file an extension. Please review an article on the subject by clicking here.

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