Form 8824 is where the exchange either gets reported correctly or becomes a source of avoidable back-and-forth with the CPA come filing season. This service assembles the underlying dates, descriptions, and figures from a Park City exchange into a package built for the tax preparer to use directly, without preparing or filing the return itself, and without offering any tax advice on how the numbers should ultimately be reported.
What Form 8824 Requires From the Exchange File
The form asks for the relinquished and replacement property descriptions, the date the relinquished property was transferred, the date the replacement property was received, realized gain, recognized gain if any boot was involved, and the carryover basis on the new property. Every one of those figures traces back to a closing statement, the QI's exchange summary, or the boot worksheet completed earlier in the transaction, which is why the package works best when it is assembled from documents gathered throughout the exchange rather than reconstructed after the fact.
The form also asks whether the exchange involved a related party, which is a separate reporting question from the property descriptions and dates; if any candidate on the identification list or the closing replacement was acquired from a related party, that fact should be flagged in the package rather than left for the CPA to discover independently.
Where a Park City Exchange Adds Extra Line Items
An exchange built on a 200%-rule identification list with several smaller Park City replacement properties, or one that paired a direct acquisition with a DST allocation, typically needs multiple property descriptions and potentially multiple related worksheets feeding the same return rather than a single clean relinquished-to-replacement pair. Getting each property's dates and figures correctly separated matters more once more than one replacement asset is involved.
Remote ownership is common among Park City investors, and CPAs working from out of state benefit from a package that is already organized by property and by date rather than a folder of unlabeled closing PDFs.
An improvement exchange adds one more layer, since the reported replacement value has to reflect only the construction work actually completed by day 180, not the full budgeted scope of the project. That distinction should be documented clearly in the package so the preparer is not left guessing which figure to use.
Preparation Package Line Items
- Relinquished property closing statement and transfer date
- Replacement property closing statement and receipt date for each acquisition
- Boot worksheet showing recognized gain, if any
- Basis carryover calculation notes
- Related-party disclosure notes, if applicable
Where the exchange involved a DST allocation, the sponsor's subscription confirmation and any distribution statements issued before year-end should be added to this list as well, since those figures feed the same return alongside any directly owned replacement property.
Handing the Package to the Tax Advisor
The finished package is delivered to the investor's CPA or tax preparer with each figure sourced back to its underlying document, so the preparer can verify rather than reconstruct the numbers before filing. This service does not calculate the investor's tax liability or determine how to report the return; the CPA remains responsible for that judgment and for the return itself.
A brief cover memo summarizing the exchange timeline and listing which document supports which figure is often the single most useful addition to the package, since it gives the preparer a map of the file before diving into the underlying paperwork.
Timing the Package Around the Filing Deadline
Because Form 8824 is filed with the return covering the year the exchange closed, the package should reach the CPA well ahead of the regular filing deadline or any extension the investor plans to use, not in the final week when there is no time left to resolve a discrepancy in the closing figures. Building the package as documents arrive during the exchange, rather than after the fact, is what keeps that timeline realistic.
An exchange that closes late in the calendar year gives the CPA less runway before the standard filing deadline, which is a good reason to have the package largely assembled by the time the replacement property closes rather than waiting until after year-end to start pulling documents together.
Common 1031 Exchange Questions
Does this service prepare or file Form 8824 itself?
No. This service organizes the dates, descriptions, and figures the form requires; the investor's CPA or tax preparer completes and files the actual return.
What happens if a Park City exchange involved more than one replacement property?
Each replacement property generally needs its own description and figures on the return, so the preparation package separates them clearly rather than combining them into a single line item.
How does a DST allocation get reported alongside a direct property purchase?
The DST interest is treated as its own replacement property for reporting purposes, with its own acquisition date and basis figures, and the sponsor's closing documentation feeds that portion of the package.
When should the Form 8824 support package be assembled?
Ideally throughout the exchange as documents become available, rather than compiled from scratch after the replacement closing, since some figures are easier to source while the transaction is still recent.
Who confirms whether any boot on the exchange is taxable?
The investor's CPA or tax advisor determines the final tax treatment of any recognized gain; this service surfaces the boot worksheet figures for that review rather than making the determination itself.
