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Do not enter more than the amount shown

any obligation of the United States or any

line 2 or line 10, column (g). In column (a),

on Form 6252, line 24 or 35.

diversified investment fund approved by

write “From Form 8824, line 36.” Do not

the OGE.

complete columns (b) through (f).

3. Also enter this amount on Form

4797, line 15.

If the property you sold was stock

Paperwork Reduction Act Notice. We

4. If all the ordinary income is not

you acquired by exercising a

TIP

ask for the information on this form to carry

recaptured this year, report in future years

statutory stock option, you may

out the Internal Revenue laws of the

on Form 6252 the ordinary income up to

be treated as meeting the holding periods

United States. You are required to give us

the taxable installment sale income, until it

that apply to such stock, regardless of how

the information. We need it to ensure that

is all reported.

long you actually held the stock. This may

you are complying with these laws and to

benefit you if you do not defer your entire

allow us to figure and collect the right

Line 22. Report a gain from the exchange

gain, because it may allow you to treat the

amount of tax.

of property used in a trade or business

gain as a capital gain instead of ordinary

(and other noncapital assets) on Form

You are not required to provide the

income. For details, see section 421(d) or

4797, line 5 or line 16. Report a gain from

information requested on a form that is

Pub. 525, Taxable and Nontaxable

the exchange of capital assets according

Income.

subject to the Paperwork Reduction Act

to the Schedule D instructions for your

unless the form displays a valid OMB

return. Be sure to use the date of the

control number. Books or records relating

Complete Part IV of Form 8824 only if

exchange as the date for reporting the

to a form or its instructions must be

the cost of the replacement property is

gain. If the installment method applies to

retained as long as their contents may

more than the basis of the divested

this exchange, see section 453(f)(6) to

property and you elect to defer the gain.

become material in the administration of

determine the installment sale income

any Internal Revenue law. Generally, tax

Otherwise, report the sale on your

taxable for this year and report it on Form

returns and return information are

Schedule D or Form 4797, whichever

6252.

confidential, as required by section 6103.

applies.

Line 24. If line 19 is a loss, enter it on

The time needed to complete and file

Your basis in the replacement property

line 24. Otherwise, subtract the amount on

this form will vary depending on individual

is reduced by the amount of the deferred

line 23 from the amount on line 19 and

circumstances. The estimated burden for

gain. If you made more than one purchase

enter the result. For exchanges with

individual taxpayers filing this form is

of replacement property, reduce your

related parties, see the instructions for

approved under OMB control number

basis in the replacement property in the

line 7.

1545-0074 and is included in the

order you acquired it.

estimates shown in the instructions for

Line 25. The amount on line 25 is your

Line 30. Enter the amount you received

their individual income tax return. The

basis in the like-kind property you

from the sale of the divested property,

estimated burden for all other taxpayers

received in the exchange. Your basis in

minus any selling expenses.

who file this form is shown below.

other property received in the exchange, if

Line 35. Follow these steps to determine

any, is its FMV.

the amount to enter.

Recordkeeping

10 hr., 17 min.

. . . .

Section 1043

1. Use Part III of Form 4797 as a

Learning about

worksheet to figure ordinary income under

Conflict-of-Interest Sales

the law or the

the recapture rules.

(Part IV)

form

1 hr., 59 min.

. . . . . . . . . . . .

2. Enter on Form 8824, line 35, the

Preparing the

2 hr., 14 min.

If you sell property at a gain according to a

amount from Form 4797, line 31. Do not

form

. . . . . . . . . . . .

certificate of divestiture issued by the

attach the Form 4797 used as a worksheet

Office of Government Ethics (OGE) or the

Copying, assembling,

to your return.

Judicial Conference of the United States

and sending the form

3. Report the amount from line 35 on

(or its designee) and purchase

to the IRS

10 min.

. . . . . . . .

Form 4797, line 10, column (g). In column

replacement property (permitted

(a), write “From Form 8824, line 35.” Do

property), you can elect to defer part or all

If you have comments concerning the

not complete columns (b) through (f).

of the realized gain. You must recognize

accuracy of these time estimates or

gain on the sale only to the extent that the

suggestions for making this form simpler,

Line 36. If you sold a capital asset, enter

amount realized on the sale is more than

we would be happy to hear from you. See

any capital gain from line 36 on your

the cost of replacement property

the instructions for the tax return with

Schedule D. If you sold property used in a

purchased within 60 days after the sale.

which this form is filed.

trade or business (or any other asset for

(You also must recognize any ordinary

which the gain is treated as ordinary

income recapture.) Permitted property is

income), report the gain on Form 4797,

2013 Instructions for Form 8824

-4-

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2013 Page 4

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