As limited partner in LLC that did 1031 exchange - do I need to file form 8824 with my personal taxes?

I'm a limited partner in a real estate syndication that recently completed a 1031 exchange for one of their properties. The deal closed in December, and I'm now getting K-1 forms from both the original LLC and the new one that owns the replacement property. I'm assuming that the LLC management team filed form 8824 (Like-Kind Exchange) as part of their entity tax filing, but I'm not 100% sure about that. My question is - do I also need to file form 8824 with my personal federal tax return? Or do I just enter the K-1 information normally? This is my first time dealing with a 1031 exchange as a passive investor, and I want to make sure I'm handling everything correctly. The K-1s don't have any special notes about the exchange that I can see. Any advice would be greatly appreciated! Thanks in advance!

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18 comments

Arjun Kurti

•8M

No, as a limited partner you typically don't need to file Form 8824 on your personal return. The partnership (LLC taxed as a partnership) should handle the Form 8824 filing at the entity level. Your responsibility is simply to report the information from the K-1s you receive. The partnership should have properly reported the 1031 exchange on their return and provided you with K-1s that reflect your share of any recognized gain (if applicable) or the adjusted basis in the new property. If there was any boot received or mortgage relief that triggered gain recognition, this would be reflected on your K-1 as taxable income. Just enter the K-1 information as you normally would on your personal return.

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Arjun Kurti

•8M

You're welcome! Yes, just enter both K-1s normally in your tax software without worrying about Form 8824 or other 1031-related forms on your personal return. As for documentation, I recommend keeping copies of both K-1s, any correspondence from the partnership about the 1031 exchange, and documentation showing your original investment amount. While you don't need to file additional forms, maintaining good records is wise in case of future property sales or if questions arise about your basis in the new partnership interest.

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Raúl Mora

•8M

After dealing with a similar situation last year, I discovered taxr.ai (https://taxr.ai) and it was a game changer for my partnership K-1 issues. I had three different K-1s from a series of 1031 exchanges our LLC did, and I was totally confused about how to handle everything correctly on my personal return. What taxr.ai did was analyze my K-1s and explain exactly how the 1031 exchange affected my personal tax situation. The system confirmed I didn't need to file Form 8824 personally, but it highlighted some adjustments to my basis I would've completely missed otherwise. Saved me from a potential headache down the road when we eventually sell.

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Raúl Mora

•8M

It actually provides a detailed explanation of how your basis transfers to the new property, including any adjustments for boot received or mortgage relief. It even created a basis worksheet I could save for my records that will be super helpful when we eventually sell the replacement property. The system handles multiple years of K-1s and can track basis changes over time. This is particularly useful for 1031 exchanges where your investment spans different entities and tax years. It will flag if there are discrepancies between years that might indicate reporting errors.

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Evelyn Kim

•8M

I tried taxr.ai after seeing it mentioned here and I take back my skepticism. I uploaded my K-1s from both the old and new LLC after our syndication's 1031 exchange, and it immediately identified that the second K-1 was reporting my capital account incorrectly. My basis wasn't properly carried over! The tool generated a detailed report explaining exactly how my basis should be calculated after the exchange. I forwarded this to the partnership's accountant who confirmed there was an error in how they reported my capital account. They're sending corrected K-1s now. Without this, I would have had major issues calculating my gain when we eventually sell. Thanks for the recommendation!

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Diego Fisher

•8M

For anyone struggling to get answers from their partnership's management about 1031 issues, I had a similar problem last year and finally got through to the IRS using Claimyr (https://claimyr.com). I tried calling the IRS directly for weeks but could never get through the endless wait times. The video demo at https://youtu.be/_kiP6q8DX5c shows exactly how it works. They basically wait on hold with the IRS for you and then call you when an agent is ready to talk. When I finally spoke to an IRS agent, they confirmed that as a limited partner, I don't file Form 8824 - that's the partnership's responsibility. They also explained that I needed to track my suspended passive losses carefully through the exchange since they carry over to the new investment.

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Diego Fisher

•8M

They use an automated system that calls and navigates the IRS phone tree, then stays on hold so you don't have to. When they reach a live agent, you get a call to connect with the agent who's already waiting. It's not about getting through faster - they're just handling the frustrating hold time for you. They use the same public IRS phone lines everyone else does, but their system can stay on hold for hours while you go about your day. When I used it, I got a call back about 1.5 hours later with an actual IRS agent ready to answer my questions about my partnership K-1 and the 1031 exchange reporting.

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Lincoln Ramiro

•8M

I'm shocked but I have to admit Claimyr actually worked. After seeing it mentioned here, I decided to try it despite my skepticism. I needed answers about how to handle my partnership K-1s after our syndication's 1031 exchange and couldn't get clear guidance from our managing partner. The system called me back with an IRS agent on the line about 2 hours after I submitted my request. The agent confirmed that Form 8824 is the partnership's responsibility, not mine as a limited partner. They also explained that I needed to watch for any "deemed cash" distribution on my K-1 that could trigger gain recognition if it exceeded my basis. I've been trying to get through to the IRS for weeks on my own with no luck. This saved me hours of frustration and gave me the confidence to file correctly.

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Faith Kingston

•8M

Just adding another perspective - I'm also a limited partner in several syndications and have gone through multiple 1031 exchanges. Make sure you verify that your capital account and tax basis are correctly tracked between the old and new partnerships. In one case, our syndication didn't properly track suspended passive losses through the exchange, which caused issues for several investors. Your tax basis doesn't just disappear in the exchange - it transfers to the new property (adjusted for any recognized gain).

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Faith Kingston

•8M

You need to maintain your own parallel records. Start with your original capital contribution, then add income reported on K-1s each year and subtract losses and distributions. This is your "outside basis" tracking. When the 1031 exchange happens, this basis should transfer to your interest in the new property, with adjustments if there was any boot or mortgage relief that triggered gain recognition. If your syndicator won't provide the calculations, you can derive them by comparing the final K-1 from the old partnership with the initial K-1 from the new one. The capital account sections should show how your investment transferred.

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