Question Corner- As the QI, what information do you file with the IRS regarding my exchange?
Nothing. You or your tax professional would use IRS form 8824, "Like-Kind Exchanges". Usually, you would report the transaction in the year the relinquished property was sold. Some of the information required includes a description of the properties sold and acquired and the date of your ID letter. Additionally, the form will ask if a related party was involved in either the sale of the relinquished property or the acquisition of the replacement property. Reporting requirements are further outlined in IRS publication 544.