US federal like-kind exchanges of real property (§1031): 2026 method, with 2025 return notes

This Guide covers federal law for tax year 2026. A separate, dated section covers 2025 returns, which are due by October 15, 2026 if the taxpayer got an extension. We found no change to §1031 itself in P.L. 119-21 (the One Big Beautiful Bill Act). The P.L. 119-21 items in the 2025 Form 8824 instructions are a new §1062 farmland election and changes to Opportunity Zones (Instructions for Form 8824 (2025)). The 2026 Form 8824 instructions are not yet published. Confirm this point against them when they are.

Scope and who this is for

• Covers: any taxpayer that files a federal return (individuals, C and S corporations, partnerships, trusts and estates) and exchanges US real property held for use in a trade or business or for investment for other like-kind real property. It covers the rule itself, deferred exchanges through a qualified intermediary (QI), the identification rules, reverse and build-to-suit exchanges, boot and basis, related parties, depreciation of the replacement property, and Form 8824 (26 U.S.C. §1031; Pub. 544).
• Real property only. For exchanges completed after December 31, 2017, §1031 applies only to real property. A transition rule keeps the old rules for an exchange in which the taxpayer gave up the old property, or received the replacement, on or before December 31, 2017 (26 U.S.C. §1031, 2017 amendment note; IRS real estate tax tips). Machinery, equipment, vehicles, artwork, collectibles, patents and other intangibles generally no longer qualify.
• Does not cover: state tax. Some states have their own rules for exchanges. These include annual information returns, or taxing the deferred gain later, when the replacement property is outside the state. This Guide gives the federal answer only. Check the rules of the state where the relinquished property is, the state where the replacement is, and the taxpayer's state of residence, each on that state's own tax agency site.
• Does not cover in depth: the other deferral regimes, such as §1033 involuntary conversions, Opportunity Zone funds and §1043 sales. See "When to refuse or refer".

Ask the client first

• What is the property given up (the "relinquished property") and what will be received (the "replacement property")? Get each one's address or legal description, and whether each is in a state or DC or outside the United States.
• How was each property used? Rental, own business, land held for appreciation, a home, a vacation home, or bought to fix up and resell? Did the client use either property personally, and on how many days in each of the last two years?
• Is the client a dealer in real estate, or was this property held primarily for sale?
• What are the dates? The contract date, the date the relinquished property was transferred, the date the written identification was delivered, and the date the replacement was (or will be) received. Also ask for the client's tax year and the return due date, and whether an extension is planned.
• Who holds the sale proceeds? Get the exchange agreement and the QI's name. Has the QI (or anyone related to it) acted in the past 2 years as the client's employee, attorney, accountant, investment banker or broker, or real estate agent or broker?
• Is the other party, or the seller of the replacement property, related to the client? That covers family, and entities the client or family own.
• Will the client receive any cash or other non-real property? Ask about mortgages paid off on the old property or taken on with the new one, and about furniture or equipment transferred with either property.
• What are the adjusted basis and the depreciation history of the relinquished property? Was there a cost-segregation study (components classed as §1245 property)?
• Was the replacement property bought before the old one was sold (a reverse exchange), or is it being built or improved after the sale?
• Is any part of either property the client's main home, now or in the last 5 years?
• Is the property in an area covered by a federal disaster declaration?

The method, step by step

1. Confirm both properties qualify. Both must be real property (Treas. Reg. §1.1031(a)-3). Both must be held for productive use in a trade or business or for investment, and neither may be held primarily for sale (26 U.S.C. §1031(a)). The intent test applies to both properties. The statute sets no minimum holding period. A home used only as a personal residence does not qualify (Form 8824 instructions, Property Used as Home).
2. Confirm they are like kind. Real properties are generally like kind to each other, whether improved or unimproved. US real property and foreign real property are not like kind to each other (26 U.S.C. §1031(h)).
3. Structure the exchange so there is no actual or constructive receipt of the proceeds. In a deferred exchange, use a QI (or a qualified escrow or trust). The written agreement must stop the taxpayer from receiving, pledging, borrowing or otherwise getting the benefit of the money before the exchange period ends. It may allow only the release events in §1.1031(k)-1(g)(6) (Treas. Reg. §1.1031(k)-1; Pub. 544). If the taxpayer receives the money in full before getting the replacement, the whole thing is a sale.
4. Identify the replacement in writing by day 45. Count from the date the relinquished property is transferred. The identification must be in a signed written document, delivered to the person who must transfer the replacement or to another person involved in the exchange who is not the taxpayer or a disqualified person. It must describe the property clearly: a legal description, street address or distinguishable name. Any property received before day 45 counts as identified. An identification can be revoked in writing before day 45 ends (Pub. 544; Form 8824 instructions, Line 5).
5. Apply the identification limits: the 3-property rule, the 200% rule, or the 95% rule. See the table below.
6. Receive the replacement by the earlier of day 180 or the due date of the transferor's return for the year of transfer, including extensions (26 U.S.C. §1031(a)(3)). The taxpayer must receive substantially the same property that was identified. If several properties are given up on different dates, both periods start on the date of the earliest transfer (Pub. 544).
7. Work out gain and boot. Realized gain is the amount realized minus adjusted basis. Recognized gain is the smaller of realized gain or boot. Boot is money plus the fair market value (FMV) of non-like-kind property received, plus net liabilities taken over by the other party, all reduced by exchange expenses. A loss is never recognized on the like-kind part (26 U.S.C. §1031(b)-(c); Form 8824 instructions, Lines 15-20).
8. Work out depreciation recapture within the recognized amount, following the §1245 and §1250 rules (Form 8824 line 21). Put the rest on line 22 as §1231 or capital gain.
9. Work out the basis of the replacement: Form 8824 line 18, plus line 23, minus line 15. Allocate it among what was received (Form 8824 instructions, Line 25). The holding period of the old property carries over (Pub. 544).
10. Set up depreciation for the replacement under Treas. Reg. §1.168(i)-6, or elect out by the due date of the return for the replacement year (Treas. Reg. §1.168(i)-6).
11. Report on Form 8824 for the year of the transfer. For a related-party exchange, also file it for the next 2 years.

Rules, limits and figures (unchanged for 2025 and 2026) (Treas. Reg. §1.1031(k)-1; Pub. 544)

These rules come from the statute, the regulations and revenue procedures, and none is indexed for inflation. The same numbers apply to exchanges in 2025 and 2026.

Rule	Limit	Condition
Identification period	45 days after the transfer of the relinquished property	Identified in writing, signed, and delivered to a proper person before the period ends
Exchange period	Earlier of 180 days after the transfer, or the return due date including extensions	Counted from the earliest transfer if there are several relinquished properties
3-property rule	Up to 3 properties of any value	Applies however many properties are given up
200% rule	Any number of properties	Their total FMV at the end of the identification period is not more than 200% of the total FMV of all relinquished property on the date it was transferred
95% rule	Rescue for over-identification	Counts only if, before the exchange period ends, the taxpayer receives identified property worth at least 95% of the total FMV of all identified property. Each property's FMV is taken on the earlier of the date received or the last day of the exchange period
Over-identification with no rescue	Treated as if nothing was identified	Property actually received within the 45 days still counts
Incidental property, for identification	Not a separate property	It is typically transferred with the larger item in a standard commercial transaction, and its total FMV is not more than 15% of the larger item's FMV. Example: furniture with an apartment building worth $1,000,000, if the personal items total no more than $150,000
Incidental personal property, for QI restrictions	Disregarded when testing the g(6) limits	Typically transferred with the real property, and not more than 15% of the aggregate FMV of the replacement real property. It is still boot for gain purposes (Form 8824 instructions)
Disqualified person as QI	Cannot act as QI	The taxpayer's agent: anyone who acted as employee, attorney, accountant, investment banker or broker, or real estate agent or broker in the 2 years ending on the first transfer. Also persons related to the taxpayer, or to such an agent, under §267(b) or §707(b), with 10% substituted for 50%
Related-party holding period	2 years from the last transfer in the exchange	Suspended while the holder's risk of loss is substantially reduced (a put, another person's right to acquire, or a short sale) (26 U.S.C. §1031(f)-(g))
Reverse exchange (QEAA)	Written agreement within 5 business days; identify the relinquished property within 45 days; complete within 180 days	Combined time both properties are held in the arrangement is not more than 180 days. An EAT that is a partnership or S corporation must be more than 90% owned by persons subject to federal income tax (Pub. 544)
Vacation home safe harbor	Owned 24 months; in each of two 12-month periods, rented at a fair rental for 14 days or more, and personal use not more than the greater of 14 days or 10% of fair-rental days	For relinquished property, the 24 months before the exchange. For replacement property, the 24 months after (Rev. Proc. 2008-16)
Leaseholds	A lease of 30 years or more is like kind to a fee interest	A life estate expected to last less than 30 years is not like kind to a remainder interest (Pub. 544)
§121 after an exchange	No home-sale exclusion if the property is sold within 5 years of its acquisition in a §1031 exchange	Also applies to anyone whose basis is carried over from the taxpayer (26 U.S.C. §121(d)(10))

Boundaries and exceptions

Situation	What decides it	Source
Held primarily for sale (dealer, flipper, developer inventory)	§1031 does not apply to real property held primarily for sale	26 U.S.C. §1031(a)(2)
Home	Property used solely as a personal residence does not qualify. A main home that was rented out, or a home that is partly business, may use §121 first and then §1031 (Rev. Proc. 2005-14). Boot is taxed only to the extent it exceeds the §121 excluded gain, and gain from depreciation after May 6, 1997 can be deferred under §1031.	Rev. Proc. 2005-14; Form 8824 instructions
Vacation or second home	Qualifies only if the facts show a business or investment holding. The safe harbor applies only if all its conditions are met. Personal use is counted under §280A(d)(2). If replacement property later fails the test, file an amended return and do not report the exchange under §1031. The safe harbor settles only the "held for" test, and every other §1031 requirement must still be met.	Rev. Proc. 2008-16
Securities, notes, partnership interests, beneficial interests, choses in action	Never real property for §1031, whatever state law says. Exception: an interest in a partnership that has a valid §761(a) election out of subchapter K is treated as an interest in each partnership asset. Stock in a cooperative housing corporation, and certain qualifying mutual ditch, reservoir or irrigation company shares, are listed as real property.	Form 8824 instructions; 26 U.S.C. §1031(e)
Crypto swaps	Not real property, so not §1031 for exchanges after 2017. For earlier years, the IRS Chief Counsel concluded that exchanges between Bitcoin, Ether and Litecoin completed before January 1, 2018 do not qualify. That advice is limited to those three coins and is not precedent.	CCA 202124008
Foreign property	Foreign real property is real property not located in a state or DC. It is like kind to other foreign real property but not to US real property. The bar does not apply to replacing condemned property under §1033.	Pub. 544; 26 U.S.C. §1031(h)
Constructive receipt	Money is constructively received when it is credited, set apart or made available to draw on. It is not when the taxpayer's control is subject to substantial limits. Receipt by the taxpayer's agent counts as receipt by the taxpayer. The protection ends when the limits lapse or are waived.	Pub. 544
When exchange funds can be released (g)(6)	(a) After the 45-day period, if nothing was identified. (b) After the taxpayer receives all the replacement property they are entitled to. (c) After a material and substantial contingency that happens after the identification period, relates to the exchange, is in writing, and is beyond the control of the taxpayer and any disqualified person (other than the transferor of the replacement). (d) After the exchange period ends.	Treas. Reg. §1.1031(k)-1(g)(6)
QI services that do not disqualify	Services for the taxpayer on exchanges intended to qualify under §1031, and routine financial, title insurance, escrow or trust services by a financial institution, title insurance company or escrow company	Treas. Reg. §1.1031(k)-1(k)
QI fails or goes bankrupt	Missing a deadline because of the QI can make the exchange taxable. If the QI defaults because of bankruptcy or receivership and Rev. Proc. 2010-14 is met, gain may be reported as payments are received.	Form 8824 instructions
Interest on exchange funds	Interest or a growth factor is taxable interest. If the QI keeps the earnings, the funds are treated as a loan to the QI, and imputed interest may apply.	Pub. 544
Reverse exchange	The EAT holds the replacement (or relinquished) property under a written agreement signed within 5 business days of getting qualified indications of ownership. At that time, the taxpayer must have a bona fide intent to do an exchange. The EAT cannot be the taxpayer or a disqualified person, and must be subject to federal income tax. Rev. Proc. 2004-51: replacement property does not count if the taxpayer owned it within the 180 days before its transfer to the EAT.	Pub. 544; Form 8824 instructions
Build-to-suit (property to be produced)	It can be identified before it exists. What is received must be substantially the same as identified, allowing for usual production changes. Only construction completed by the date of receipt counts, and only to the extent it is real property under local law. Work done after receipt is not like-kind property; that part is a taxable exchange for services.	Pub. 544
Related party (§1031(f))	Covers family (spouse, siblings, parents, children, grandparents, grandchildren) and related entities under §267(b) or §707(b)(1). If either party disposes of the property received within 2 years of the last transfer, the deferred gain is recognized as of the date of that disposition. Exceptions: (A) a disposition after the death of either party; (B) an involuntary conversion, only if the exchange came before the threat or imminence of the conversion; (C) it is shown to the IRS's satisfaction that neither the exchange nor the disposition had tax avoidance as one of its principal purposes. An exchange structured to avoid these rules, such as buying through a QI from a related party who takes cash, is not a like-kind exchange.	26 U.S.C. §1031(f); Form 8824 instructions, Line 7
Non-like-kind property given up	Gain or loss on it is recognized: its FMV minus its adjusted basis	Pub. 544
Liabilities	Debt the other party takes on counts as money received. It is netted against debt the taxpayer takes on, cash paid, and the FMV of other property given up. Cash received is not offset by debt the taxpayer assumes. Exchange expenses reduce the boot but not below zero.	Form 8824 instructions, Line 15; Treas. Reg. §1.1031(d)-2
Closing-statement items	Exchange expenses include brokerage commissions, attorney fees and deed preparation on the sale, and closing costs on the purchase. Property taxes, rent prorations, security deposits and repairs shown on the closing statement are not exchange expenses.	Pub. 544
Deadlines in a federally declared disaster	If an IRS news release grants relief, the 45-day and 180-day deadlines, and the Rev. Proc. 2000-37 deadlines, can be postponed by 120 days or to the end of the general disaster postponement, whichever is later. They cannot go past the return due date including extensions, or one year. Relief requires that the relinquished property was transferred (or the EAT got ownership) on or before the disaster date, and that the taxpayer is affected or has difficulty meeting a deadline because of the disaster.	Rev. Proc. 2018-58 §17

Depreciation of the replacement property (Treas. Reg. §1.168(i)-6)

• Exchanged basis (the carried-over part) keeps being depreciated over the remaining recovery period of the relinquished property. If the replacement has a longer recovery period, use the longer period, treating the replacement as placed in service when the old property was. If the replacement's period is shorter, keep the relinquished property's remaining period. A less accelerated method for the replacement also changes the method.
• Excess basis (for example, extra cash paid or new debt) is treated as newly placed in service in the year of replacement. Use the recovery period, method and convention that apply at that time.
• Election out: a taxpayer may elect to treat the whole basis as newly placed in service. The election is made on Form 4562 by the due date (including extensions) of the return for the year of replacement. It is made separately for each exchange, by the partnership or S corporation itself and not by its owners, and it can be revoked only with IRS consent.

§1245 and §1250 recapture in an exchange (Form 8824 instructions, Line 21)

• §1245 real property (for example, cost-segregated components that count as real property under §1.1031(a)-3): the ordinary income is the smaller of (1) the depreciation allowed or allowable (up to the realized gain on line 19), or (2) the line 20 gain plus the FMV of non-§1245 like-kind property received. So recapture can exceed the boot-driven gain when the replacement property has little §1245 property (see Case 3).
• §1250 property: the ordinary income is the smaller of (1) the additional depreciation that would be recaptured on a sale, or (2) the larger of the line 20 gain or the excess of (1) over the FMV of §1250 property received.
• Recapture potential that is not triggered carries over to the replacement property. The IRS example shows $5,000 of potential §1250 recapture attaching to the building received.

Worked cases

Cases 2, 3 and 4 use the IRS's own example figures, from the page linked in each heading. Cases 1, 5, 6 and 7 are made up for illustration. The rules they test come from the linked sources.

Case 1: when the 180 days outrun the return due date (26 U.S.C. §1031(a)(3); IRS extensions)

• A calendar-year individual transfers the relinquished rental on November 15, 2025.
• Day 45 is December 30, 2025. Day 180 is May 14, 2026.
• The 2025 return is due April 15, 2026. That is earlier than day 180, so without an extension the exchange period ends on April 15, 2026.
• To keep the full window, request an extension by April 15, 2026, which moves the due date to October 15, 2026. The 180-day limit then controls. The extension moves only the filing date, not the date tax must be paid.
• Rule of thumb: a transfer on October 17 has day 180 on April 15 of the next year. So a calendar-year individual who transfers after October 17 needs the extension. For a transfer after October 17, 2026, extend the 2026 return. Entities with an earlier due date reach this point sooner, so use the transferor's own due date.

Case 2: cash and a mortgage as boot (Pub. 544, Partially Nontaxable Exchanges)

• Investment real estate: FMV $110,000, adjusted basis $80,000. It is exchanged for real estate worth $100,000 plus $10,000 cash. Exchange expenses are $5,000.
• Amount realized: $110,000 - $5,000 = $105,000. Realized gain: $105,000 - $80,000 = $25,000.
• Recognized gain: cash $10,000 minus expenses $5,000 = $5,000. Deferred gain: $25,000 - $5,000 = $20,000.
• Basis of the new real estate (Form 8824 line 18 + line 23 - line 15): $80,000 + $5,000 - $5,000 = $80,000. That equals FMV $100,000 minus the deferred $20,000.
• Variant: the old property carried a $30,000 mortgage that the other party assumes. Realized gain becomes $55,000. Recognized gain becomes $35,000: $10,000 cash plus $30,000 debt relief, minus $5,000 expenses.

Case 3: Form 8824 lines with §1245 real property (Form 8824 instructions, Lines 15-25)

• Taylor's building: FMV $220,000, adjusted basis $100,000, mortgage $80,000. Taylor receives Finley's building (FMV $250,000, mortgage $150,000, assumed by Taylor) plus $40,000 cash.
• Line 15: $40,000. The $80,000 of debt Finley assumed is not added, because it does not exceed the $150,000 of debt Taylor assumed.
• Line 16: $250,000. Line 17: $290,000.
• Line 18: $100,000 basis plus the $70,000 net debt Taylor took on = $170,000.
• Line 19: $120,000 realized gain. Line 20: $40,000 recognized.
• §1245 real property inside Taylor's building has $35,000 of depreciation. Line 21: $35,000 ordinary income, because that is smaller than $40,000 plus the $250,000 FMV of non-§1245 property received. Line 22: $5,000. Line 23: $40,000. Line 24: $80,000 deferred.
• Line 25 (basis): $170,000 + $40,000 - $40,000 = $170,000.

Case 4: related party sells within 2 years (Pub. 544, Like-Kind Exchanges Between Related Persons)

• In December 2024, a taxpayer exchanged business real property (FMV $200,000, basis $65,000) plus $15,000 cash for a sister's business real property (FMV $215,000, basis $70,000).
• The taxpayer realized $135,000 of gain and recognized none, and took a basis of $80,000. The sister realized $145,000 and recognized $15,000.
• In 2025, within 2 years, the taxpayer sold the property to a third party for $220,000.
• The taxpayer reports the $135,000 deferred gain on the 2025 return, as well as the gain on the 2025 sale. The sister reports $130,000 on her 2025 return and increases her basis to $200,000.
• None of the exceptions (death, involuntary conversion, no tax-avoidance purpose) applies.

Case 5: over-identification and the 95% rule (Treas. Reg. §1.1031(k)-1(c)(4))

• The relinquished property is worth $600,000 on the transfer date. The 200% ceiling is $600,000 × 200% = $1,200,000.
• Four candidates at $300,000 each total $1,200,000, which does not exceed the ceiling, so the identification is valid.
• A fifth candidate brings the total to $1,500,000. That is more than 3 properties and more than 200%, so it is over-identified.
• It is rescued only if the taxpayer receives identified property worth at least $1,500,000 × 95% = $1,425,000 by the end of the exchange period. In practice, that means all five. Otherwise only property received within the 45 days counts.

Case 6: vacation home as replacement property (Rev. Proc. 2008-16)

• In the first 12 months after the exchange, a beach condo is rented at a fair rental for 200 days, and the owner stays 25 days.
• The personal-use limit is the greater of 14 days or 10% of 200 days (20 days), so it is 20 days. 25 days is over the limit, so the safe harbor fails for that period.
• The taxpayer can still argue investment intent on the facts, but without the safe harbor. If the return already reported the exchange, and the unit does not meet the standards, the Rev. Proc. says to file an amended return.
• If instead the owner stayed 14 days, and the same test is met in the second 12-month period with 24 months of ownership, the safe harbor applies.

Case 7: reverse exchange timing (Pub. 544, QEAA)

• An EAT takes title to the replacement on March 2, 2026. The written agreement must be signed by March 9, 2026 (5 business days).
• The relinquished property must be identified by April 16, 2026 (day 45).
• The replacement must reach the taxpayer, or the relinquished property must be sold to an unrelated buyer, by August 29, 2026 (day 180). The combined parking time must stay within 180 days.
• If the taxpayer owned the replacement at any time in the 180 days before March 2, 2026, the safe harbor does not treat it as received in an exchange.

When to refuse or refer

• Refer any exchange with a related party, or where a related party is the seller of the replacement. Include the 2-year monitoring, the §1031(f)(4) anti-abuse rule and Rev. Rul. 2002-83 facts (Form 8824 instructions, Line 7).
• Refer reverse and build-to-suit exchanges outside the exact Rev. Proc. 2000-37 terms. The IRS says it draws no inference on parking arrangements outside the safe harbor (Rev. Proc. 2000-37).
• Refer tenancy-in-common (TIC) interests. Rev. Proc. 2002-22 only sets conditions for asking for a ruling, and says its guidelines "are not intended to be substantive rules and are not to be used for audit purposes" (Rev. Proc. 2002-22). Do not call it a safe harbor.
• Refer "drop and swap" and "swap and drop" partnership structures. No official safe harbor or minimum holding period exists for them. Partnership interests themselves never qualify.
• Refer multi-asset exchanges (exchange groups and residual groups under §1.1031(j)-1). The IRS says not to complete lines 12-18 and to attach a statement instead (Form 8824 instructions).
• Refer a QI default or bankruptcy (Rev. Proc. 2010-14), missed deadlines, and disaster postponements. The relief depends on the specific IRS notice.
• Refer US possessions, foreign property, and §1033 condemnations.
• Refer combining an exchange with Opportunity Zone deferral, §1062 farmland deferral or an installment sale. P.L. 119-21 changed the OZ rules (Form 8824 instructions).
• Refuse to state as settled: whether a short-held or recently converted property was "held for investment", whether the taxpayer is a dealer, and any state's treatment. Name the fact pattern and the official source to check.

Filing and payment

• Form 8824 is filed with the return for the year the relinquished property was transferred, even if no gain is recognized. For a related-party exchange, file it for the 2 years after the exchange year as well (complete Parts I and II) (Form 8824 instructions, When To File). Several exchanges can go on one summary Form 8824 with an attached statement for each.
• Line 5 is the date of written identification, or the receipt date if the property was received within 45 days. Line 6 is the receipt date. Line 7 is the related-party question. Lines 11a-11c are the related-party exceptions.
• Where recognized gain goes: gain on business property goes to Form 4797 line 5 or 16. Gain on capital assets goes to Schedule D, dated the date of the exchange. If the installment method applies, it goes to Form 6252 (Form 8824 instructions, Line 22).
• Home cases: write "Section 121 exclusion" and the amount on line 19, and follow the adjusted steps for lines 20 and 25.
• Deadlines and payment: an extension moves the filing date to October 15. Tax is still due by the April due date (IRS extensions).

2025 returns: tax year 2025, extended deadline October 15, 2026 (Instructions for Form 8824 (2025))

• Use the 2025 Form 8824 and its instructions. The §1031 rules and every limit in this Guide are the same for 2025 and 2026.
• New in the 2025 instructions: e-filed Forms 8824 now have space on line 19 for "Section 121 exclusion". There is new guidance for lines 19 and 20. Line 25b includes §1252, 1254 and 1255 property. Lines 12a, 15a and 25a-25c are on the e-filed form, so no separate attachment is needed after 2023.
• For a transfer in late 2025, check whether the 2025 return was extended. If it was not, the exchange period ended on April 15, 2026, and replacement property received after that date is not like-kind property (Case 1).

Completion checklist

• Both properties are real property under §1.1031(a)-3, held for business or investment, not held primarily for sale, and both in the US or both foreign.
• A home or vacation home was tested under Rev. Proc. 2005-14 or Rev. Proc. 2008-16, with all the conditions.
• The QI is not a disqualified person: 2-year agent lookback, related persons at 10%. The exchange agreement limits access to funds to the (g)(6) events only.
• The written identification was signed, delivered to a proper person and clearly described, by day 45, within the 3-property, 200% or 95% rules.
• The replacement was received by the earlier of day 180 or the return due date including extensions, and an extension was filed where needed.
• For a reverse exchange: the 5-business-day agreement, bona fide intent, 45 and 180 days, the combined 180-day limit, and no ownership in the 180 days before the transfer to the EAT.
• Boot, the liability netting and the exchange expenses tie to Form 8824 lines 15-20. Recapture is on line 21, and basis is on line 25 and split on lines 25a-25c.
• Related party: 2-year monitoring is calendared, including suspension periods. Form 8824 is diarized for the next 2 years.
• The depreciation of exchanged basis and excess basis is set up, or the election out was made on Form 4562 by the due date.
• State treatment was checked on each relevant state's own site, and the refer items were sent on.