There are four main ways to execute a real estate like-kind exchange, each with its own rules. Sold commercial property A for $1. You exchange real estate used in business that has a FMV of $25,000 and a basis of $20,000 for rental real estate that has a market value of $16,000 and $9000 in cash. section 1031, the taxpayer will not be. Download the free like kind exchange worksheet. Note: Only real property should be described on lines 1 and 2. Share your form with others. Get a Like Kind Tax Deferred Exchange Calculator branded for your website! Colorful, interactive, simply The Best Financial Calculators! If you exchange either business or investment property that is of the same nature or character, the IRS won’t recognize it as a gain or loss. Unfortunately, when the Treasury regulations were written for the tax code relating to Section 1031 Congress excluded stocks, bonds, and other evidences of indebtedness. For example, a taxpayer may identify a hotel it will acquire for $1,000,000 as replacement property, even if the. You can also check how the values were changing within a given period. For FAR and REG, I did this type of Excel work over and over and over till typing in the formulas with data became second nature. If you take cash. We tried to find some amazing references about 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template for you. Web worksheets and checklists available for free to natp members include:. Did you sell or dispose of any part of the like-kind property that you received as part of the exchange process:. . I am having tangle reporting the whole edit to TurboTax, in particular of sale of the old rental property. 45 Day Deadline: You have to include prospective like-kind replacement properties prior to midnight on the 45th day after closing on your relinquished property sale transaction. See full list on mortgagecalculator. This 1031 calculator has the same tool our experts use to calculated deferrable taxen when selling a property. like-kind exchanges and the extent to which their use varies across states and metropolitan areas. Perform "What if" analysis by changing the input. Information about Form 8824, Like-Kind Exchanges, including recent updates, related forms, and instructions on how to file. In a typical 1031 exchange where one property is exchanged for another property, TurboTax will prepare Form 8824, Like-Kind Exchanges, and lines 12 - 18 will reflect, among other things, the realized gain,. § 1. b. The rules governing IRC section 1031 like-kind exchanges are complex and carry inherent risks. Like-Kind Exchange: A tax deferred exchange that allows for the disposal of an asset and the acquisition of another similar asset without generating a tax liability from the sale of the first. Such calculator is designed to calculate. We have developed the enclosed worksheets for use in calculating the information used to report 1031 Exchanges on Form 8824 and herein enclose a copy. Web get a like kind exchange calculator branded for your website! If you exchange either business or investment. Example #2 – Use Cell References. So let’s explore them step by step. This taxpayer fully depreciated the five-year property components by the time the exchange occurs. About The 1031 Exchange Calculator. Select the Price property. The Tax Court's decision in Estate of Bartell, 147 T. Calculate the taxes you canister defer when selling a property; Includes state taxes and capital recapture. Like Kind Exchange Calculator. Example and Explanation of the Like-Kind Exchange Analysis: A rental property has a selling price of $500,000 and will have selling costs of $40,000. In practice, virtually any two types of real estate are like-kind. Example 1 illustrates the calculation of the reduced maximum exclusion. 06/03/15. Using a 1031 tax-deferred exchange requires advance planning. 2. You exchange your $3,000,000 property for the $2,500,000 Starbucks. Regs. 90% of Listing Price – All Liens = Estimated Proceeds. Section references within this publication are to the Internal Revenue Code, and regula-tion references are to the Income Tax Regula-tions. If the property described on line 1 or line 2 is real property located outside the United States, indicate the country. A taxpayer will also trigger taxes if they opt to receive some cash out at the closing of their relinquished property. 1 by flood. 1. At closing, the net proceeds of $700,000 (after expenses and paying off mortgage debt of just under $100,000) were sent to the QI, properly starting Kelly’s 1031 exchange. Nontaxable exchanges - Like kind exchange of a vehicle. The gain or loss, if any, will instead flow to Form 4797 from Form 8824. Form 8824 figures the amount of gain deferred as a result of a like-kind exchange. Web get a like kind exchange calculator branded for your website! Web the 1031 exchange, named for section 1031 of the u. Repetition is the mother of learning! 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template. Liabilities received 5. Sec. 03. Click + Add Form 8824 to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit). If the exchange isn’t completed within that time frame, it’s considered invalid. We hope you can find what you need here. This calculator is designed to calculate recognized loss, gains and the basis for your newly received property. The relinquished properties sold and the like-kind replacement properties acquired should be segregated or sorted into exchange groups. Go to the Income/Deductions > Like-Kind Exchanges worksheet. C. Obtain a Like Kind Swap Calculator branded for is website! Colorful, interactive, simply The Best Corporate Handheld! If you austauschen either business or investment property that belongs of the same nature or character, the IRSA won't recognize it as a gain or loss. 1. The maximum exclusion under Sec. Mail in to the IRS with your tax return. Cash & Debt ReliefExample 1 Boot Example Adjusted basis of relinquished property: $40,000 Closing costs (total expense of sale &. Like-Kind Exchanges (Ex. A. All formula entries begin with an equal sign (=). Click the Investment Income dropdown, then click Like-Kind Exchanges (Section 1031) & Conflict-of-Interest Sales (Section 1043). Non-like-kind property could include the following: Seller financing, promissory note. The 1031 Exchange Calculator considers information for both the sale and buy properties. Calculate a basis consistent with the final estate tax value by starting with the reported value and then making any allowed adjustments. section 1031, the taxpayer will not be. Audits & Reviews;. (2023 amounts) The Net Investment Income (NII) tax is applicable when the Taxpayer’s “Adjusted Gross Income” exceeds $200,000 for a single Taxpayer or. ” If the transaction involved personal property, add. 5 million. This code section refers to “like-kind” exchanges of certain types property. This involves filling out IRS Form 8824 and submitting it along with your federal income tax return. You can’t exchange into it. Generally, if the exchange meets the requirements of I. b. Web web like kind exchange worksheet 1031 exchange calculator excel. Existing Regs. It sells for $650,000. 97th St. Tax Court upholds non-safe-harbor reverse like-kind exchange. Download Now. This calculator is designed into calculate. No. Information on the Like-Kind Exchange. In essence you Defer the gain by transferring it to. Select the destination cell, and press Ctl+V. Accruit. C. Edwards, JD, CES®. A like-kind exchange is a type of transaction that may allow for the taxpayer to defer taxable gains or avoid taxable gains altogether. This is also Cash Boot. kind properties, cash or other (not like-kind) property. Reverse 1031 Exchange Time Periods. We tried to get some great references about like. how you figured the realized and recognized. Requires only 10 inputs into ampere simple Excel spreadsheet. Property that was eligible for this tax-free exchange included both real and personal property. In a 1031 Exchange, “ boot ” is defined as the fair market value of cash or “other property” received in a 1031 Exchange. Like kind exchange worksheet worksheet — db-excel. Capital gains tax is owed when you sell a non-inventory asset at a higher price than you paid resulting in a realized profit. The result is 6. S. 1031 exchange is purchased for $1,500,000. Sec. 168 (i)-6; this regulation became final on 3/1/07. Fees increase rapidly in proportion to the size and complexity of the transaction. Instead, attach your own statement showing. For further discussion on differences between federal and California E&P calculations, see section d, of this chapter. 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template. Los Angeles. The primary form you prepare for a 1031 exchange is Form 8824. 1. On line 20, enter the smaller of: Line 15 minus the exclusion, or. First let’s calculate our tax basis: Cost to Purchase in 2001 = $135,000; Net Sales Price in 2018 = $225,000; Tax Basis = $90,000; This $90,000 is the amount of capital gains we’ve realized. Few real estate exchanges are multi-asset exchanges. Depreciation of Replacement Property 5 . ”. The 1031 exchange rules and regulations are applied separately and individually to each 1031 exchange group to determine the amount of any excess gain to be recognized, and the basis of the like-kind replacement properties received. There is a realized loss of $14,000 but it is not recognized because it is personal. Completion of IRS Form 8824 “Like-Kind Exchanges” 6 Net amount for Reinvestment. Source: db-excel. In January of 2005, he exchanges the shopping center plus $2 million cash for an office building in a like-kind exchange. On Mac, click the New tab and then click Blank Workbook. Like kind exchange worksheet — db-excel. 34,308. The following table describes how to determine the amount of net proceeds based on a borrower’s anticipated equity. Like-kind exchanges, that is exchanges of property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind", have long been permitted under the Internal Revenue Code. To pay no tax when executing a 1031 Exchange, you must purchase at least as much as you sell (Net Sale) AND you must use all of the cash received (Net Cash Received). About Our Firm; Meet Our Team; Services. Under the Tax Cuts and Jobs Act passed in December 2017, like-kind exchanges changed. 45 Day Deadline: You have to identify prospective like-kind replacement properties prior to midnight on the 45th day after closing on your property sale transaction. Part III computes the amount of gain required to be reported on the tax return in the current year if cash or property that isn't of a like kind is involved in the exchange. We have broken out the calculation for realized gains or losses, recognized gains or losses, and basis in the below “mental map”. Draw your signature, type it, upload its image, or use your mobile device as a signature pad. You should see screens such as Sales of Other Business Property, Total Gross Proceeds, and these screens may not relate to your tax situation. Published for residents of like kind exchange, you are properly. Purchase price, Exchange Property $ 6 Less depreciation taken to date of sale ( ) 7 Less deferred gain from previous 1031 Exchange (if any) ()8 Net cash paid (same as line 3 above) 9 Net debt incurred (line 31) 10 Less net debt relief (line 30) limited to amount of net cash paid (line 9) ( ) 11 Total to Form 8824 Line 18 $ 12 Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Web get a like kind. 1. Reporting State Capital Gain 6 . Include your name and identifying number at the top of each page of the statement. Germs germ preschool 1031 excel nara designlooter lessons kuprik reino1031 like kind exchange calculator 1031 irs pdffiller calculation fillable faxSpreadsheet excel calculator amortization expenses 1031 fmla amortize budgeting naturalbuffdog. 3%. Original purchase price ($):Let’s say we’ve decided to sell a property and use the 1031 like-kind exchange to defer taxes. For your convenience current Boydton mortgage rates. (A) The exchange group consists of real estate A, real estate B, and real estate R. Calculating percent difference between 2 columns. Certain members of the executive branch of the Federal Government and judicial officers of the Federal Government use Part IV to elect to defer gain on conflict-of-interest sales. 1031. The taxpayer took depreciation on Property X for the 10 years they owned the property. s. photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. The way to complete the 2002 Form 8824 (Fill-in Version). The taxpayer decides to complete a like-kind exchange for. Arizona 1031 Exchange Rules, FAQs, and More - TFS Properties. Use Part III to figure the amount of gain required to be reported on the tax return in the current year if cash or property that isn't of a like kind is involved in the exchange. Subtract the amount realized from the cost basis of the new property and add the depreciated basis back in. Dos and Don'ts of 1031 Exchanges. Calculating the cost basis for a 1031 exchange is similar to calculating the cost basis on the sale of a single home up to a point. Austin, TX 78701. ) of your intent so they can properly assist you in conducting the transaction. Preview 3 hours ago That's why we're giving you the same 1031 exchange calculator our exchange experts use to help investors find smarter investments. Help desk. So you can’t use your real estate broker or agent or a relative to facilitate the. If you want to meet the conditions for a 1031 exchange, you much purchase a replacement property for at least $650,000. The 1031 Exchange Calculator above provides a simple estimation of potential taxes related to the sale of investment property and net sales proceeds available for reinvestment. On March 31, 2018, she receives an insurance reimbursement of $1,650,000 for the loss. Web 1031 like kind exchange worksheet and form 8824 worksheet template worksheet april 17, 2018 we tried to get some amazing references about 1031 like. grass fedjp worksheet study site. Select the fillable fields and put the required information. Select Like-Kind Exchange, then continue with the interview process to enter all of the appropriate information. Reverse 1031 Exchange Time Periods. The recognized gain would be 2500 (the lesser of 3000 realized gain and 2500 boot received). This will paste the formula exactly, without changing the cell references, because the formula was copied as text. Handling costs in originating terminal. What is a Like Kind Exchange? Like-Kind Exchanges (Form 8824): Any loss on other property given up shown on line 14 isWorksheet exchange kind 1031 worksheets nar exchanges realtor field library guide spreadsheet excel rent sellExchange kind example examples basis calculate depreciation cs Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don re which39 1031 like kind. Select Section 1 - General. 3. $606,625. 180 Day Deadline: Must. The truth is the IRS considers any deeded property that you don’t live in and is purchased for investment purposes qualifies as “like-kind. Enter the smaller of line 1 or line 2 here. Part III Determining Boot Lines 12, 13 and 14: To be completed only if, along with the “like kind” property relinquished, you transferred other property that was not like kind (e. 91 generally conforms to the changes made under the TCJA with some modifications. Find a buyer for the property you wish to sell. See Page 1 of the Instructions for Form 8824 on multi-asset exchanges and reporting of multi-asset exchanges. Although Section 1031 has been around for nearly one hundred years, the TCJA now. One important update to note is that under the Tax Cuts and Jobs Act of 2017, Section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property. Example 1. We’ll be happy to help you with calculating your 1031 Exchange, please give us a call 215-489-3800. kind properties, cash or other (not like-kind) property. Other Gains/Loss (4797, 8824) Form 8824 - Like-Kind Exchanges - Click New. It uses the date of the sale, adjusted basis, sales price, cost, commissions, exchange fee, liabilities, and mortgages. 25 * total deferred gains of $500,000 = $125,000. 1031. Source. The taxpayer took depreciation on Property X for the 10 years they owned the property. Excel Formula #4: DateDif – Date Difference. Description of like-kind property given up: 2 . You would like to do a 1031 exchange into a $2,500,000 Starbucks in Clearwater, Oklahoma. Enter the amount from line 3 here and on Form 4562, line 1. 1. Tenants in common may do this by “rolling up” their interests into a single, new LLC through an IRS § 721 exchange. . For CPA exam purposes there are four calculations that you should understand. Maximum threshold cost of section 179 property before reduction in limitation calculation. 25 * total deferred gains of $500,000 = $125,000. . Excel is an obvious tool for our day-to-day activities. Fortunately, the TCJA passed by Congress and signed into law by the President generally preserved like-kind exchanges under Section 1031 of the Code. Using a 1031 tax-deferred exchange requires advance planning. . ” This tool, which is described under Section 1031 of the Internal Revenue Code, typically rises in popularity when capital gain tax rates increase. Finding the New Cost Basis. If received, it is taxable. Click on the Add an Exchange button and follow the prompts to add the next like kind exchange. You only need to click on this toll to be connected to the exchange rate market. IncomeThis qualified intermediary (QI) is allowed to sell the taxpayer’s property, collect the funds from that sale, and then use those funds to acquire a replacement property for the taxpayer. If you exchange either business or investment property that is of the same nature or character, the IRS won't recognize it as a gain or loss. Therefore, the exchange is one of like-kind property. 31, 2017 may involve a taxable gain or a loss. 1031 Exchange Calculator. This is the primary purpose of Part III and. $300,000 acquisition cost less $125,000 deferred gains = new basis of $175,000. Generally, if you make a like-kind exchange, you are not required to recognize a gain or loss. The property I relinquished in the like-kind exchange is being reported in form 4797, "Sale of Business Property". 5 million. Here it is. Estimate Capital Gains Taxes Using Our 1031 Like-Kind Exchange Calculator. Simultaneous Exchange. Like-Kind Exchanges online: To get started on the blank, utilize the Fill camp; Sign Online button or tick the preview image of the document. My challenge is to know if IODIN am doing it correctly in ProSeries. This type has some timing rules, including that you have 45 days from the date of sale of the relinquished property to identify potential replacement properties in writing to your QI and 180 days from the date of sale of your relinquished property to close the sale of the replacement property or properties. Rental real estate losses up to $25,000 may be deducted by an individual whose modified adjusted gross income remains less than $100,000. If you exchange either business or investment property that is of the same nature or character, the IRS won’t recognize it as a gain or loss. Generally, if the exchange meets the requirements of I. Calculating taxes due upon sale vs 1031 exchange as a starting point, a. Commercial property is depreciated over 39 years. To figure the portion of the gain allocated to the period of non-qualified use, see Worksheet 3. These exchanges allow investors to defer capital gains taxes on the exchanged property. ; Complete the Asset Information section with the data from the 8824: . About the Calculator. Web 1031 like kind exchange. Contact Info. ’ If both Line 9 & Line 10 contain ‘No’ and this is the year of the exchange, go to Part III. On the screens that follow, you should see an option to select like-kind exchanges. Add lines 1, 2 and 8 11. Calculate the taxes you can defer when selling a property. With a 1031 like-kind exchange, you can sell your investment property, purchase a like-kind property and defer capital gains tax. These calculations are estimates for the purpose of demonstration. The renewed interest in making like-kind exchanges to defer the tax on capital gains arises from two. Type text, add images, blackout confidential details, add comments, highlights and more. 1031 transactions assume exchanges calculate homeworklibWhat is a 1031 exchange? Like kind exchange worksheet form1031 worksheet partial irs related. Learning Objectives. ”. This calculator is designed to calculate. This generally requires a reciprocal transfer of property between two parties. If the final replacement property is transferred in the next. This calculator is designed to calculate and the recognized loss, gain and the basis for a Like Kind Exchange. Realized Gain, Recognized Gain and Basis of Like-Kind Property Received. 180 Day Deadline: You must finish. 15th Street Suite 700. Regs. Lets forget the ad libs about whether the exchange is valid or not. The property exchanged must be held for investment purposes or for productive use in a trade or business. 888-367-1031. About The 1031 Exchange Calculator. 180 Day Deadline: You must finish your 1031 exchange (which includes the conveyance of title to all of your. Select the formula in the cell using the mouse, and press Ctrl + C to copy it. 1031 exchange purposes, this taxpayer avoids taxable gains and Sec. Part III computes the amount of gain required to be reported on the tax return in the current year if cash or property that isn't of a like kind is involved in the exchange. Web 1031 like kind exchange. View Calculator Profit Margin Calculator. Receive a Like Kind Exchange Calculator branded for your website! Colorful, interactive, simply The Our Treasury Calculators! If you auszutauschen choose business or property anwesen ensure is of one alike nature or temperament, the IRS won't recognize it as a gain or defective. 1031 calculation 1040 completing1031 exchange worksheet excel Section 263a calculation worksheetWorksheet. In this video we go over reporting a 1031 exchange on Form 8824. A definition of the form fields helps in understanding the information needed to accurately estimate your gains and. Contact Us. Furthermore, “like-kind” only refers to the nature or character of the property, not to its grade or quality. You own a $3,000,000 investment property with a tax basis of $2,600,000 — meaning that you have a $400,000 capital gain. Estimate the steuern you can defer when selling an property; Includes declare taxes real depreciation recapture. 1031 and 1033 exercise in the following 10311031 exchange rules: 7 irs rules you must follow 39 1031 like kind exchange worksheet1031 exchange: how it. Click the Investment Income dropdown, then click Like-Kind Exchanges (Section 1031) & Conflict-of-Interest Sales (Section 1043). Calculation. Here’s an example of how to calculate the cost basis of your cryptocurrency: Take the initial investment amount (let’s assume it is $1000). (1) The exchange group has an exchange group surplus of $1000 because the. , 15 the Tax Court referred to the regulation as providing a safe harbor. For the like-kind exchange of an aggregate asset or for a mass trade, each treatment must calculate. 1031 Property Exchange for Excel is designed for investors, real estate brokers and facilitators allowing to: Balance equities. Calculate Bonnie's Gain or Loss for her Printer. Example #4 – Formula Cell is not Value, It is the only Formula. 1 . But the fundamentals are the same. Checkpoint Firewall Installation Tour. Enter the gross proceeds from sales or exchanges reported to you for 2022 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. 1031 like kind exchange worksheetWorksheet. For many investors, this has been a method for swapping their way to significant gains by. The completed exchange is reported for the tax year the initial relinquished property (the property being sold) is settled and the 180 day exchange period is started. Exchanges of vehicles after Dec. If you are an investor and considering selling your investment property and purchasing another, you may want to do a like-kind exchange. If you are an investor and considering selling your investment property and purchasing another, you may want to do a like-kind exchange. The new property you’ve targeted is only priced at $750,000. Information on the Like-Kind Exchange. If the final replacement property is transferred in the next. This is also Cash Boot. A like-kind exchange is a transaction to defer the capital gain tax arising in the transaction of the sale of an asset when it can be shown that the proceeds are being used to acquire another asset in place of the first-mentioned asset. The same 45 day Identification Period and 180 day Exchange Period deadlines of IRC §1031 apply to a safe harbor reverse exchange under Rev. 1. ”. Estimate the steuern you can defer when selling an property; Includes declare taxes real depreciation recapture; Immediately download the 1031 exchange calculatorIf you exchange either business or investment property that is for the same nature or personality, the IRS won't seeing it the a gain or loss. To enter a like-kind exchange in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select: Income. A reverse 1031 exchange is a way for real estate investors to trade investment properties without incurring capital gains taxes. 1031 (k)- 1 (c) (5) permits taxpayers to identify a large unit of real property for a like - kind exchange that includes incidental personal property constituting up to 15% of the aggregate fair market value. On the summary Form 8824, enter only your name and identifying number, "Summary" on line 1, the total recognized gain from all exchanges on line 23, and the total basis of all like-kind property received on line 25. Allison invests $1,550,000 in a new building and buys stock with. She wants to do a 1031 exchange into a $325,000 condo. Calculate the taxes. Mail: Phone: Fax: Email: 1031 Corporation 1707 N Main St Longmont, CO 80501. 2022 General Instructions Future developments. Also, the basis like-kind exchange. Few real estate exchanges are multi-asset. Completing a separate 1031 exchange for each property you sell may be viable. d. 1245(b)(4) recapture. On the Home tab, click . In this scenario, the money from the sale of the first investment property. By doing this you avoid reporting all of ar at least a portion of the taxable gain of the sale on your current tax return. 168(i)-6, open the Asset List window and mark the Apply separate passenger auto limits when electing out of Reg. how you figured the realized and recognized. Like kind exchange worksheet — db-excel. 168(i)-6 checkbox in the Setup > Options > Calculation tab. GeorgeM777. Add lines 4, 5 and 6 8. FMV of non-like-kind property received 3. If you traded in a business vehicle in 2017 or earlier, you. Changes to rules for like-kind exchanges: Like-kind exchange treatment applies to certain exchanges of real, personal or intangible property. 0. com50 saving and investing worksheet Briefencounters ivuyteqLike-kind exchange. . If you’re working with a qualified intermediary, that person can’t have an interest in the exchange. Instead of using a calculator, use Microsoft Excel to do the math! You can enter simple formulas to add, divide, multiply, and subtract two or more numeric values. The calculator is created to help users measure the loss or. Download this excel loan calculator template in pdf online and create a thorough and profession loan calculator file with accurately calculated loans for your business or organization. Section 1031 provides that “No gain or loss shall be recognized if property held for use in a trade or business or for investment is exchanged solely for property of like kind. To pay no tax when executing a 1031 Exchange, you must purchase at least as much as you sell (Net Sale) AND you must use all of the cash received (Net Cash Received). Source: db-excel. Like Kind Exchange * indicates required. But, there are certain scenarios where it may make sense to exchange one property for multiple. That excess $250,000 is considered cash boot, and is subject to capital gains taxes as well as depreciation recapture. Cheat Code in Excel I use to answer Like-Kind exchange questions. Subtract the total amount of depreciation you have taken on the property from your result to calculate the adjusted basis of the property you are giving up in the like-kind exchange. As soon as you decide to conduct a 1031 exchange, be sure to tell any professionals you will be working with during the exchange (i. You must write the 2 currency codes in the same cell. 02. 1031 exchange properties utilize trusts larger1031 exchange and depreciation recapture explained a-to-z 1031 exchange basis rules1031 exchange rules in california. -30,831. In order for the new contract to qualify as a. Then your percent change formula takes this form: = (C2-B2)/B2. The term boot refers to non-like-kind property received in an exchange. In General an Exchange (known as a 1031 Exchange) is the sale of your property and then putting all of the money received into the purchase of a new Like Kind Property. The meaning of LIKE-KIND EXCHANGE is an exchange of business or investment property of the same kind, class, or character and excluding securities that is made pursuant to section 1031 of the Internal Revenue Code and is thus exempt from taxation. The 1031 exchange can be particularly helpful if you want. 1031 to provide that Sec. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The amount on Line 25 of Form 8824 is the basis you would use to enter the acquired asset for depreciation purposes.