--- title: How Do I Report a 1031 Exchange on My 1040? description: Learn more about how do I report a 1031 exchange on my 1040? image: https://www.realized1031.com/hubfs/iStock-1390422252-modified-db1f1d10-6af2-4fe1-a607-2376da2ebf8a.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # How Do I Report a 1031 Exchange on My 1040? Posted May 13, 2025 ![iS-1390422252](https://www.realized1031.com/hs-fs/hubfs/iStock-1390422252-modified-db1f1d10-6af2-4fe1-a607-2376da2ebf8a.jpg?width=6061&height=3411&name=iStock-1390422252-modified-db1f1d10-6af2-4fe1-a607-2376da2ebf8a.jpg) Undergoing a 1031 exchange can be an advantageous investment strategy that lets you diversify your portfolio, grow your capital, and defer capital gains taxes for investors. To maintain your tax-deferred status, however, the IRS has set strict rules. These stipulations include proper reporting during tax filing. However, this step of the process can be complex. If you’ve been asking questions like “How do I report a 1031 exchange on my 1040?” Realized 1031 is here with a quick guide to help you learn how. Keep reading to learn about the process. ### Which IRS Forms Are Required When Reporting a 1031 Exchange? [Reporting your 1031 exchange](https://www.realized1031.com/blog/how-do-i-report-a-1031-exchange-to-the-irs) transactions involves several forms that you need to attach along with your Form 1040. Primarily, [Form 8824](https://www.irs.gov/forms-pubs/about-form-8824) serves as the document for reporting 1031 exchanges. There are three parts you’ll need to fill out, each requiring specific information about the exchange. The transaction timeline, the details of the property, and boot are some of the details you’ll need to include. In cases when parts of the exchange are taxable, you may need to fill out and attach these other forms. - [Form 4797](https://www.irs.gov/forms-pubs/about-form-4797)** (Sales of Business Property):** Used if the exchanged property was used for business or investment. - [Schedule D ](https://www.irs.gov/forms-pubs/about-schedule-d-form-1040)**(Capital Gains and Losses):** If [capital gains apply](https://www.realized1031.com/blog/what-happens-if-i-dont-report-capital-gains), they must be reported here. If there is any taxable amount, this flows to your Form 1040 as part of your total income. Accurate details are necessary to ensure compliance and prevent any issues with the IRS. ### Step-by-Step Guide to Completing Form 8824 Here’s what you need to include in your Form 8824. ### Part I This section requires the details of the relinquished and replacement properties. Plus, you will need to enter the dates of the transaction to prove that you followed the 45-day and 180-day timeframes required in 1031 exchanges. ### Part II This part of the form is only necessary if the like-kind exchange involved “related parties.” This typically refers to family members or entities where there’s a controlling interest. ### Part III For Part III, you’ll need to list the fair market value of the properties. You’ll also calculate for any boot and taxable gain, if applicable. ### What About Delaware Statutory Trusts? Delaware Statutory Trusts (or DSTs) are a type of investment vehicle that you can use to finish your 1031 exchange. Instead of swapping properties, you use the [proceeds to purchase fractional interest in a trust.](https://smartasset.com/investing/delaware-statutory-trusts-dsts) When [reporting DSTs,](https://www.realized1031.com/blog/how-to-report-delaware-statutory-trust-dst-income) you will still need to use Form 8824 and follow the same process for traditional 1031 exchanges. One specific addition is [Schedule E](https://www.irs.gov/forms-pubs/about-schedule-e-form-1040). If the DST generates income, this form will detail supplemental income and loss. To get information for Schedule E, you’ll need the grantor letter, which provides information about the DST and your share of income, expenses, and deductions. The grantor letter is similar to the K-1 form given by S-corporations and partnerships. ### Final Thoughts 1031 Exchange 1040 Reporting There are a few relevant forms to keep in mind when reporting your 1031 exchange transaction to the IRS. Make sure to fill out your Form 8824, Form 4797, and other relevant documents with accuracy to preserve your tax-deferred status. The best practice is to work with your accountant or a tax professional to avoid mistakes and gain peace of mind. For more details about 1031 exchange reporting, we’re the team to trust. Get in touch with Realized 1031 to schedule an appointment. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. **Sources:** [https://www.irs.gov/forms-pubs/about-form-8824](https://www.irs.gov/forms-pubs/about-form-8824) [https://www.irs.gov/forms-pubs/about-form-4797](https://www.irs.gov/forms-pubs/about-form-4797) [https://www.irs.gov/forms-pubs/about-schedule-d-form-1040](https://www.irs.gov/forms-pubs/about-schedule-d-form-1040) [https://smartasset.com/investing/delaware-statutory-trusts-dsts](https://smartasset.com/investing/delaware-statutory-trusts-dsts) [https://www.irs.gov/forms-pubs/about-schedule-e-form-1040](https://www.irs.gov/forms-pubs/about-schedule-e-form-1040) Download The Guide To 1031 Exchange [![The 1031 Investor's Guidebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-250.png?width=250&height=250&name=1031-Exchange-eBook-250.png "Tackle the art and science of ...") ](https://www.realized1031.com/blog/how-do-i-report-a-1031-exchange-on-my-1040#blogform) Download eBook ---   --- ### The 1031 Investor's Guidebook ![Download The Guide To 1031 Exchange](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/1031-Exchange-eBook-550.jpg?width=550&height=650&name=1031-Exchange-eBook-550.jpg) Tackle the art and science of completing your 1031 exchange. 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However, this step of the process can be complex. If you’ve been asking questions like “How do I report a 1031 exchange on my 1040?” Realized 1031 is here with a quick guide to help you learn how. Keep reading to learn about the process. Which IRS Forms Are Required When Reporting a 1031 Exchange? Reporting your 1031 exchange transactions involves several forms that you need to attach along with your Form 1040. Primarily, Form 8824 serves as the document for reporting 1031 exchanges. There are three parts you’ll need to fill out, each requiring specific information about the exchange. The transaction timeline, the details of the property, and boot are some of the details you’ll need to include. In cases when parts of the exchange are taxable, you may need to fill out and attach these other forms. Form 4797 (Sales of Business Property): Used if the exchanged property was used for business or investment. Schedule D (Capital Gains and Losses): If capital gains apply, they must be reported here. If there is any taxable amount, this flows to your Form 1040 as part of your total income. Accurate details are necessary to ensure compliance and prevent any issues with the IRS. Step-by-Step Guide to Completing Form 8824 Here’s what you need to include in your Form 8824. Part I This section requires the details of the relinquished and replacement properties. Plus, you will need to enter the dates of the transaction to prove that you followed the 45-day and 180-day timeframes required in 1031 exchanges. Part II This part of the form is only necessary if the like-kind exchange involved “related parties.” This typically refers to family members or entities where there’s a controlling interest. Part III For Part III, you’ll need to list the fair market value of the properties. You’ll also calculate for any boot and taxable gain, if applicable. What About Delaware Statutory Trusts? Delaware Statutory Trusts (or DSTs) are a type of investment vehicle that you can use to finish your 1031 exchange. Instead of swapping properties, you use the proceeds to purchase fractional interest in a trust. When reporting DSTs, you will still need to use Form 8824 and follow the same process for traditional 1031 exchanges. One specific addition is Schedule E. If the DST generates income, this form will detail supplemental income and loss. To get information for Schedule E, you’ll need the grantor letter, which provides information about the DST and your share of income, expenses, and deductions. The grantor letter is similar to the K-1 form given by S-corporations and partnerships. Final Thoughts 1031 Exchange 1040 Reporting There are a few relevant forms to keep in mind when reporting your 1031 exchange transaction to the IRS. Make sure to fill out your Form 8824, Form 4797, and other relevant documents with accuracy to preserve your tax-deferred status. The best practice is to work with your accountant or a tax professional to avoid mistakes and gain peace of mind. For more details about 1031 exchange reporting, we’re the team to trust. Get in touch with Realized 1031 to schedule an appointment. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Sources: https://www.irs.gov/forms-pubs/about-form-8824 https://www.irs.gov/forms-pubs/about-form-4797 https://www.irs.gov/forms-pubs/about-schedule-d-form-1040 https://smartasset.com/investing/delaware-statutory-trusts-dsts https://www.irs.gov/forms-pubs/about-schedule-e-form-1040", "articleSection" : [ "1031 Exchange" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2025-05-13T14:00:00+0000", "datePublished" : "2025-05-13T14:00:00+0000", "description" : "Learn more about how do I report a 1031 exchange on my 1040?\n", "headline" : "How Do I Report a 1031 Exchange on My 1040?", "image" : { "@type" : "ImageObject", "height" : 3411, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1390422252-modified-db1f1d10-6af2-4fe1-a607-2376da2ebf8a.jpg", "width" : 6061 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/how-do-i-report-a-1031-exchange-on-my-1040", "name" : "How Do I Report a 1031 Exchange on My 1040?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/iStock-1390422252-modified-db1f1d10-6af2-4fe1-a607-2376da2ebf8a.jpg" } ```