Form 8824: Like-Kind Exchanges
What is Form 8824?
Generally, if you exchange business or investment property solely for business or investment property of a like kind, the tax rules provide that no gain or loss is recognized. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Use Parts I, II, and III of Form 8824 to report each exchange of business or investment property for property of a like kind.
Entering Form 8824 into TurboTax
Don't worry! When you use TurboTax to prepare your taxes, we’ll ask you questions about your sales or exchanges of business or investment property, figure out how the transaction should be reported, and fill in all the right forms for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these directions.
- Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
- Select the Wages & Income subtab.
- Scroll down the Wages & Income screen until you see the Business Items group.
- Click on the Start/Update button to the right of the Sale of Business Property category.
- Follow the prompts.
What if I had two or more like kind exchanges?
After you have entered your first like kind exchange, you will be given the option of adding any other like kind exchanges you might have. Simply click on the Add an Exchange button, and we will walk you through step-by-step adding all your exchanges.
If you need to correct or change any information you have entered on your 8824, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
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