Form 8824 Preparation Support

Form 8824 is the IRS form that reports a like-kind exchange, and it requires specific figures, relinquished and replacement property values, liabilities assumed and relieved, cash received, and realized versus recognized gain, that are scattered across closing statements, loan documents, and the qualified intermediary's accounting. We are not tax preparers and do not complete or advise on the form itself; we assemble the underlying numbers into a single sheet so the investor's CPA can prepare it accurately without spending billable hours reconstructing figures from a stack of PDFs.

Investors who handle this step themselves often underestimate how many separate documents the form actually draws from, and a Detroit exchange that closed two properties through two different title companies compounds that problem further.

The Figures That Actually Populate the Form

Rather than handing a CPA the entire closing file and asking them to find what they need, we pull the specific line items the form calls for: the relinquished property's adjusted basis and sale price, the replacement property's purchase price, the debt paid off versus the debt assumed or originated, cash paid or received at each closing, and the qualified intermediary's exchange fee. Every figure is sourced back to the specific closing statement or QI accounting line it came from, so the CPA can verify it rather than take it on faith.

Building the Sheet While the Numbers Are Still Fresh

The best time to build this figure sheet is within a few weeks of the replacement closing, while loan documents and closing statements are easy to locate, rather than the following March when a CPA is trying to reconstruct a transaction from memory during filing season. A Detroit investor who closes a replacement purchase in June and waits until February to start gathering documents routinely finds that a title company or lender has archived files that take extra time to retrieve.

Handling Multiple Properties on One Return

An exchange involving more than one relinquished or replacement property, common on a Detroit 200 percent or 95 percent identification list, needs its own reporting line for each property pairing, and mixing them into one combined number creates work the CPA then has to unwind. We keep the figure sheet organized property by property so it maps directly onto how the form itself is structured:

• Each relinquished property listed with its own basis and sale figures
• Each replacement property listed with its own purchase price and financing figures
• Debt relief and debt assumed tracked per property, not combined
• Any DST allocation shown as its own line with sponsor-provided figures

This per-property structure matters most when one relinquished property was exchanged into two or three smaller replacement assets, since the form's allocation rules depend on tracing value from a specific origin to a specific destination rather than treating the whole transaction as a single lump sum.

What Stays With the CPA, Not With Us

Determining recognized gain, applying basis carryover rules, and deciding how boot gets reported are tax positions that belong entirely to the CPA, informed by the investor's full tax picture, not something we calculate or advise on. Our role stops at making sure the CPA has accurate, sourced numbers rather than estimates, so the tax position they take is built on solid figures. Investors sometimes ask us to interpret a specific line of the form directly, and we redirect that question to the CPA every time, since guessing at a tax position without the investor's full return in view is not a service we provide.

Catching Gaps Before Filing Season Gets Tight

Reviewing the figure sheet early tends to surface gaps, a missing closing statement page, an unclear seller credit, a DST sponsor's accounting that has not yet arrived, while there is still time to request the missing document calmly. Finding the same gap in late March, with a filing deadline approaching, turns a simple document request into a scramble that adds unnecessary pressure to both the investor and the preparer.

A short checklist review shortly after closing, matched line by line against what the form ultimately requires, catches most of these gaps before they ever become a filing-season problem.

Common 1031 Exchange Questions

Do you prepare Form 8824 for me?

No, we assemble the underlying transaction figures the form requires; the actual preparation and any tax positions taken on the form are handled by the investor's CPA or tax preparer.

How early should I start gathering documents for Form 8824?

As soon as possible after the replacement property closes, rather than waiting until tax filing season, since closing statements and loan documents are easiest to obtain while the transaction is recent.

What if my exchange involved more than one replacement property?

Each property pairing needs its own set of figures on the form, and we organize the figure sheet property by property so the CPA can map it directly without having to separate combined numbers themselves.

Does a DST allocation need different figures for the form than a direct property?

Yes, a DST interest generally requires figures from the sponsor's closing documentation rather than a standard purchase agreement and closing statement, and we track those separately on the figure sheet.

Can you help if I am filing an extension because my exchange closed late in the year?

Yes, we can assemble figures for exchanges that close close to a filing deadline, though the investor should confirm extension timing and any related deadlines directly with their CPA or tax advisor.

Ready to organize the exchange file?