Form 8824 is the IRS form that reports a like-kind exchange, and it requires specific figures pulled directly from both the START EXCHANGE REVIEW and the replacement purchase: dates, property descriptions, fair market values, adjusted basis, liabilities assumed or relieved, and any boot received. None of that gets calculated by the qualified intermediary. It falls to the investor's CPA or tax preparer, and their job goes faster when the underlying numbers arrive organized rather than as a stack of closing documents to sort through in April.
The Figures Form 8824 Actually Requires
The form asks for the date the relinquished property was transferred, the date the replacement property was received, a description of both properties, and the calculation of realized gain, recognized gain, and adjusted basis in the new property. Debt figures from both sides of the transaction matter directly here, since a drop in loan balance between the two properties factors into whether boot was received and how much of it is taxable.
We pull these figures from the closing statements and loan documents as soon as they are available, rather than waiting until tax season to reconstruct dates and dollar amounts the CPA needs months earlier than the filing deadline.
Where Multiple Replacement Properties Complicate Reporting
An investor who used the 200% rule to identify several smaller Nashville-area properties, say a Smyrna retail pad and a Wilson County industrial building, needs each replacement property's basis and value tracked separately for reporting purposes, even though they came from a single START EXCHANGE REVIEW. Combining those figures into one lump number creates more work for the CPA later, not less, since basis allocation across multiple properties has to be defensible individually.
This shows up often in exchanges tied to the region's multifamily and hospitality growth, where an investor exiting a single legacy holding rolls proceeds into two or three smaller apartment or extended-stay assets spread across Murfreesboro, Hendersonville, and Mount Juliet. Each of those replacement properties carries its own acquisition date, debt structure, and closing costs, and the CPA needs those figures kept distinct rather than blended into an average, since a future sale of just one of the properties will need to isolate that asset's carried-forward basis on its own.
- Adjusted basis calculated separately for each replacement property acquired
- Debt assumed or relieved tracked property by property, not combined
- Fair market value support for each asset at the time of acquisition
- Cash and non-like-kind property received clearly identified as boot
Related-Party Exchanges Need Extra Documentation
If either the relinquished or replacement property involved a related party, additional disclosure requirements apply, including a two-year holding period rule that can retroactively disqualify the exchange if violated. We flag related-party transactions early so the CPA has visibility into this requirement well before the return is due, since it changes what needs to be tracked going forward, beyond what gets reported for the current year alone.
Handing The CPA A File They Can Work From
The goal is a package that puts dates, values, debt figures, and property descriptions in one place, cross-referenced against the closing statements so the CPA can verify rather than reconstruct. That difference matters most when an investor works with a tax preparer who was not involved in the original exchange coordination and is seeing the transaction for the first time at filing, which is common when a return is prepared by a firm separate from whoever coordinated the exchange itself.
Why Nashville Investors Often Need This Extra Step
An investor selling a relinquished property in Davidson County and buying replacement property in a different submarket, or even a different state entirely, often ends up with two settlement statements from two title companies that format their numbers differently. Reconciling loan payoff figures, prorated taxes, and closing costs across those two documents takes real time, and it is easy for small classification differences to create confusion when the CPA is trying to isolate the exact figures Form 8824 requires.
We build a single reconciliation sheet that pulls the relevant figures from both statements into a consistent format, flagging anything that looks like it might affect boot calculation or basis before it becomes a question the CPA has to chase down separately during return preparation.
Common 1031 Exchange Questions
Who is responsible for actually filing Form 8824?
The investor's CPA or tax preparer files the form as part of the tax return. This service organizes the underlying figures but does not prepare or file the form itself.
What happens if a replacement property is sold in a future year?
The basis carried forward from the original exchange affects gain calculation on that future sale, which is why keeping accurate basis records from Form 8824 matters well beyond the year of the exchange.
Does every 1031 exchange require Form 8824?
Yes, any exchange intended to qualify for like-kind deferral treatment is reported on Form 8824 for the tax year the relinquished property was transferred.
How does debt relief get reported if replacement debt is lower?
A reduction in debt from the relinquished to the replacement property is generally treated as boot unless offset by additional cash invested, and that figure needs to be reflected accurately on the form.
Can this help if multiple properties were used to complete one exchange?
Yes. Multi-property exchanges under the 200% or 95% rule require basis and value figures broken out by property, which this organizing work is built to support.