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CCH Axcess Tax

Form 8824 - Like-Kind Exchanges

We prepare Form 8824 from information entered on Income / Deductions > Like-Kind Exchanges and carry any recognized gain or loss to Schedule D or Form 4797. The basis of the exchanged property shown on Form 8824 is adjusted by the amount of depreciation, if any, when you use the "Automatic Sale" feature.

When a like-kind exchange is entered on Like-Kind Exchanges worksheets and the "Automatic Sale" feature is used, a new asset is created from the exchange as a continuation of the sold asset. A second asset is created if there was boot given in the exchange or the gain recognized exceeds the boot received. These assets will Pro Forma for the next year's return and can be currently viewed on depreciation sections by going to Options and then Reset Input. The system will only create up to 5 continuation assets.

The original or exchanged asset has a number, up to four digits, entered in the "Like-Kind Number" field on the depreciation section. The new asset created from the exchange (the continuation asset) will have the identical number entered in the "Like-Kind Number" field associated with the new asset. If there was boot given in the exchange or the gain recognized exceeds the boot received, a second asset is created with the same identical number, as relating to the same exchange.

If you do not want the continuation assets to be created, mark the field "if NOT Electing Notice 2000-4" on the Like-Kind Exchange Property Description section.

An unlimited number of Forms 8824 can be produced.