Tax Consequences - Reporting Requirements

Reporting Requirements
The tax law recognizes that some exchanges result in the change of form of property but not in substance. Because of this, nontaxable exchanges are allowed in realization of no change in economic position. The replacement property is simply viewed as a continuation of the previous investment.

Each taxpayer that participates in the "like-kind exchange" must file Form 8824 to report the transaction and to receive the tax-free status. Qualifying Transactions

You May Also Like

Related Articles
  1. Professionals

    Worried About Stocks? Try on Convertibles

  2. Entrepreneurship

    Fed Raising Rates Affects Startup Funding

  3. Professionals

    Risks to Consider When Investing in ...

  4. Personal Finance

    Why Cash Could Be Your Best Bet

  5. Options & Futures

    Options Strategies That Profit From ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!