Form 8824 Preparation Support

Form 8824 is where the exchange either holds up on paper or does not, and the form depends entirely on numbers pulled from the closing statements, the boot calculation, and the exchange documentation file. This service organizes those figures for Colorado investors so the number set handed to the CPA is complete and internally consistent before the return is filed, checked line by line the way a schedule gets checked before it goes out to the whole fleet.

What Form 8824 Actually Asks For

The form requires a description of both the relinquished and replacement properties, the dates of transfer and receipt, the fair market value of each property, adjusted basis of the relinquished property, any liabilities assumed or relieved, cash or other boot received, and the resulting realized gain, recognized gain, and basis in the new property. Every one of those figures traces back to a closing statement, a debt payoff letter, or the boot calculation completed earlier in the exchange.

A Colorado exchange involving more than one replacement property multiplies this list, since each property's description, value, and basis allocation needs its own line of support rather than one blended figure.

The dates matter as much as the values — the form distinguishes when the relinquished property transferred from when each replacement property was received, and a Colorado closing that slipped close to day 180 needs that date recorded precisely rather than approximated.

Where the Underlying Numbers Come From

Adjusted basis on the relinquished property comes from the investor's depreciation schedule and prior basis records, not from the sale price. Fair market values on both sides typically come from the closing statements or, when a DST or fractional interest is involved, from the sponsor's offering documents. Debt figures — payoff on the relinquished side, new debt on the replacement side — come directly from the settlement statements for each closing, and any gap between them is the mortgage boot already flagged during the boot calculation.

Selling costs and closing costs on both the Colorado relinquished sale and the replacement purchase also factor into the basis calculation, and these line items are easy to overlook if the closing statements are not pulled together in one place before the form is drafted.

Assembling the Number Set for the CPA

Preparation support pulls together a consistent record covering each of the following inputs.

• relinquished property adjusted basis and depreciation schedule
• closing statement figures from both the relinquished and replacement transactions
• debt payoff and new debt amounts supporting the boot calculation
• any cash boot or non-like-kind property received during the exchange
• qualified intermediary fees and closing costs affecting basis

Multi-Property and DST Filings

An exchange into several Colorado replacement properties, or a DST allocation, requires the form to reflect each replacement asset's share of basis, gain deferral, and any boot separately rather than as one blended figure. This gets more detailed when a Front Range direct purchase is paired with a DST interest absorbing the remainder of the proceeds — the CPA needs the split between the two clearly documented, not estimated.

A Colorado Springs or Western Slope acquisition involving debt on only part of the purchase can raise the same issue, since the boot calculation still needs to be tied back to a specific property line on the form.

Keeping each property's figures separate from the start avoids a difficult reconstruction later, particularly if one of the Colorado replacement properties is sold again in a future year and its carried-over basis needs to be traced back to this filing.

Handing Off a Filing-Ready Record

The completed number set, along with the supporting closing statements and boot calculation, gets delivered to the investor's CPA for the actual Form 8824 preparation and filing. This service organizes figures and documentation; it does not prepare or file tax returns, and the final form and its tax positions should be completed and reviewed by the investor's CPA or tax advisor.

Handing over a clean, reconciled number set instead of a folder of loose closing statements is usually what keeps a Colorado exchanger's return on schedule with the rest of their filing, rather than delayed while the CPA reconstructs figures from scratch.

Common 1031 Exchange Questions

Who actually files Form 8824?

The investor's CPA or tax preparer files it with the federal return. This service organizes the underlying figures so the CPA has a complete, accurate number set to work from for the Colorado exchange.

Where does the adjusted basis figure on Form 8824 come from?

From the investor's depreciation records and prior basis on the relinquished property, not from its sale price or fair market value.

Does a DST allocation change how Form 8824 gets filled out?

Yes — the trust interest's share of basis and gain needs to be tracked separately from any direct property purchase in the same exchange, especially when proceeds are split between the two.

What if the boot calculation and the closing statements do not match?

That discrepancy needs to be resolved before the form is prepared, since Form 8824 reports both the boot received and the resulting recognized gain, and a mismatch can misstate the taxable amount.

Can this service confirm whether the exchange qualifies for tax purposes?

No — it organizes documentation and figures. Whether the exchange qualifies and how it should be reported is a determination for the investor's CPA or tax advisor familiar with the Colorado transaction.

Ready to organize the exchange file?