Your client has an apartment building in Denver and wants to "purchase" a condo in Detroit that he intends to rent out so he fills out Form 8824. Instead of renting out the property in Detroit, he lives in it. What concept is your client attempting to accomplish?

Question

Quizplus · Accepted Answer

A client that has filled out Form 8824 concerning a property in Denver and a property in Detroit that are used as rental properties is attempting to accomplish a like-kind exchange. Form 8824 must be filed in the current year of exchange and for two years following the year of a related party exchange. Property received must be identified with 45 days after the date on which the property is transferred, and received within 280 days after the date on which the old property is transferred, but not alter than the due date of the tax return for the year that the old property is transferred. Note, an individual that fails to rent the property for specified amount of time will be viewed by the IRS that the client was attempting a non-taxable gain.

Your Client Has an Apartment Building in Denver and Wants