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Lkie kind exchange differing opions! What do you think,

Level 4

Differing opinions over addresses.  The client gave up 2 properties to receive multiple properties.

The exchange numbers and figures are all good the problem comes in because on the 8824

it lists only the name of the first property although the other property is given up. Yes all the properties and assest are included in this exchange and the figures are all correct. I have one in the office that wants to do 2 like kind exchanges so that there is a name given for each property.  I say NO to me this creates 2 like kind exchanges when there is only 1 and the paperwork only shows that this is one transaction. Then you must decide what property recevied goes with each one sold. and this is not how the transaction took place.  Anyone have this situation.




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4 Replies 4
Level 15

You will need to make an attachment to show the allocation for the two given and the multiple received. I agree with your coworker and believe you will need to create two 8824 - one for each of the given properties. 

See the instructions regarding multiple exchanges https://www.irs.gov/instructions/i8824#idm139888469381888

Level 4

Thanks for your input and help.

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Level 14

One of the first things I learned in my IRS Taxpayer Service training, back during the last millennium, was that “the form is your friend.” I can still picture the veteran Taxpayer Service Representative from Quincy, Illinois, drilling the class with that reminder.

It’s true, most of the time. If you’re unsure of the results, just complete the form and it will lead you to the correct answer. Even with the 4797, which is much more difficult if you try to use the Intuit worksheets instead of completing the form, where “line by line works fine.”

But on rare occasions, the form can be your enemy. You need to know the law so that you know what the result should be, and then plug the numbers into the form to arrive there. That’s the case when you have a complicated Section l031 exchange. As @George4Tacks  points out, then the instructions might be your friend. Just don’t be a square-peg slave to a round-hole master.

Level 4

Thanks for your input. I think I will let him use the 2 like kinds 8824’s that he wants



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