2024-Exchange-Reporting-Guide - Like-Kind Exchanges

Sep 19, 2026

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Comprehensive guidance for like-kind (Section 1031) exchanges commenced in 2024, focused on required federal tax reporting for taxpayers and their return preparers. Provides explanations and line-by-line instructions for completing IRS Form 8824, including how to evaluate realized gain versus recognized gain and how “boot” can create recognized gain. Covers key reporting timing rules, interest reporting via Form 1099-INT, treatment when exchanges span multiple tax years, and related procedural steps and references.

LanguageEnglish

CategoryLetters

FormatPDF

Pages20

Reading Time7 min

AccessFree to download

Reporting Interest on Exchange Proceeds

When to Report an Exchange

Federally Declared Disaster Extensions

Exchanges with “Boot” or Failed Exchange Spanning Two Tax Years

Depreciation of Replacement Property; Depreciation Recapture

Repeal of Personal Property Exchanges; Cost Segregation

Reporting a “Reverse” Exchange

Selective State Tax Issues

Completion of Form 8824 “Like-Kind Exchanges”

2024 IRS Form 8824 “Like-Kind Exchanges”

Introduction As a full service like-kind exchange accommodator, 1031 [CORP. is](CORP. is) providing this Guide to assist our valued clients and their tax return preparers regarding the required tax reporting for an exchange commenced in 2024. While 1031 CORP. does not provide tax or legal advice, we hope the information in this Guide is helpful in completing IRS Form 8824 and understanding other tax consequences of your like-kind exchange. Because Form 8824 is not necessarily “user friendly,” we have included line by line instructions to assist you. In a number of places in the Guide, we refer to your “recognized gain” and to your “realized gain.” For example, if you sell a property for $1,000,000 (ignoring transaction costs) and your adjusted tax basis is $200,000, your “realized gain” is $800,000 . Your “recognized gain” will be lower (and possibly zero); however, if you complete a Section 1031 exchange. (“Realized gain” refers to your economic gain;“recognized gain” is the gain you report on your income tax return as taxable income.) In general, your recognized gain will be zero if you trade “equal or up” in both value and equity on your exchange. For example, assume the same facts as above and also assume your relinquished property is subject to debt of $400,000 so that $600,000 (i.e., your equity) is deposited as exchange funds with us. To fully defer your realized gain (i.e., to achieve zero recognized gain), you must invest in your replacement all $600,000 of exchange funds plus an additional $400,000 from one or more of the following sources: (i) assumed debt,(ii) new debt, or (iii) out-of-pocket cash. Each dollar of shortfall in either equity or value generally will give rise to a dollar of recognized gain or taxable “boot.” As noted above, 1031 CORP. does not provide legal, tax or accounting services. This Guide provides only a summary of certain tax issues related to Section 1031 exchanges. There may be other tax issues based on your particular circumstances which we are not addressing. We strongly encourage you to consult with a competent tax advisor regarding all tax and legal aspects of your exchange including the preparation of Form 8824. Our outside tax counsel at Flaster Greenberg PC assisted in the preparation of this Guide. David Shechtmanand Matthew J. Meltzer at Flaster Greenberg are nationally recognized 1031 experts. Their contact information is below if you are interested in retaining them for complex tax reporting issues or tax advice on future exchanges. David Shechtman, Flaster Greenberg PC p: 215.279.9381 • f: 610.260.4447 • c: 610.453.1974 •e: David.Shechtman@flastergr[eenberg.com](eenberg.com)[ ](eenberg.com)Matthew J. Meltzer, Flaster Greenberg PC p: 215.279.9384 • f: 610.260.4447 • e: Matthew.Meltzer@flastergreenberg.com 1.800.828.1031 [www.1031CORP.com](www.1031CORP.com) Table of Contents Reporting Interest on Exchange Proceeds 1 When to Report an Exchange 1 Federally Declared Disaster Extensions 2 Exchanges with “Boot” or Failed Exchange Spanning Two Tax Years 2 Depreciation of Replacement Property; Depreciation Recapture 3 Repeal of Personal Property Exchanges; Cost Segregation 4 Reporting a “Reverse” Exchange 5 Selective State Tax Issues 5 Completion of Form 8824 “Like-Kind Exchanges” 6 2024 IRS Form 8824 “Like-Kind Exchanges” 9 1.800.828.1031 [www.1031CORP.com](www.1031CORP.com) Reporting Interest on Exchange Proceeds If your exchange proceeds were deposited into an interest-bearing exchange account with one of the several financial institutions utilized by 1031 CORP., you should receive a Form 1099-INT directly from the financial institution. The primary financial institutions used by 1031 CORP. in 2024 were Customers Bank, TriState Capital Bank and LINKBANK. If your exchange was initiated in 2024 and completed in 2025, you will receive two separate Form 1099-INT statements--one for each calendar year. Report your 2024 interest income as sh

FAQs

How should interest earned on exchange proceeds be reported?

If exchange proceeds were deposited in an interest-bearing exchange account, the financial institution issues Form 1099-INT directly. Report 2024 interest income as shown on the 2024 Form 1099-INT, even if the interest was reinvested into replacement property or received from 1031 CORP. after completion.

When must a Section 1031 exchange be reported for tax purposes?

Report the exchange for the tax year in which the exchange was initiated by the sale of the first relinquished property, regardless of when replacement property is acquired. Do not file the tax return until the exchange is complete, and use an extension if the 2024 return due date occurs before completion to preserve the full 180-day exchange period.

What is “recognized gain” and how is it different from “realized gain”?

“Realized gain” refers to economic gain, while “recognized gain” is the gain reported on the income tax return as taxable income. Recognized gain is generally zero if the exchange is completed with equal or up value and equity; shortfalls in equity or value generally produce recognized gain (taxable “boot”).

What should be done if you did not receive your 2024 Form 1099-INT?

Contact your Exchange Officer, who will request a duplicate copy from the financial institution.

Sep 19, 2026

Upload by Xiajie