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Level 4
May 9, 2023
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8824 on 1024 - 2 for 2

  • May 9, 2023
  • 1 reply
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My client sold 2 different properties in exchange for 2 other properties. Relinquished properties were vacant lots and new properties are also a vacant lot. Couple of question. 1. Do I need 2 8824s? 2. If I complete 8824 does it carry to 4797 automatically?

Properties relinquished were in Houston and new lots purchased were in another city.

this is my first time doing an 8824.

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Best answer by BobKamman

The location of the properties doesn't matter.  I would use a single 8824.  It shouldn't go to Form 4797, but straight to Schedule D (although if all the gain is deferred, it would not show up as income anywhere).  

1 reply

BobKamman
BobKammanAnswer
Level 15
May 9, 2023

The location of the properties doesn't matter.  I would use a single 8824.  It shouldn't go to Form 4797, but straight to Schedule D (although if all the gain is deferred, it would not show up as income anywhere).