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1. See section 453(f)(6) to determine

the cost of replacement property

which the gain is treated as ordinary

the installment sale income taxable for this

purchased within 60 days after the sale.

income), report the gain on Form 4797,

year and report it on Form 6252.

(You also must recognize any ordinary

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

income recapture.) Permitted property is

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

2. Enter on Form 6252, line 25 or 36,

any obligation of the United States or any

complete columns (b) through (f).

the section 1252, 1254, or 1255 recapture

diversified investment fund approved by

amount you figured on Form 8824, line 21.

the OGE.

Paperwork Reduction Act Notice. We

Do not enter more than the amount shown

ask for the information on this form to carry

on Form 6252, line 24 or 35.

If the property you sold was stock

out the Internal Revenue laws of the

3. Also enter this amount on Form

you acquired by exercising a

United States. You are required to give us

TIP

4797, line 15.

statutory stock option, you may

the information. We need it to ensure that

be treated as meeting the holding periods

4. If all the ordinary income is not

you are complying with these laws and to

that apply to such stock, regardless of how

recaptured this year, report in future years

allow us to figure and collect the right

long you actually held the stock. This may

on Form 6252 the ordinary income up to

amount of tax.

benefit you if you do not defer your entire

the taxable installment sale income, until it

gain, because it may allow you to treat the

You are not required to provide the

is all reported.

gain as a capital gain instead of ordinary

information requested on a form that is

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

subject to the Paperwork Reduction Act

Line 22. Report a gain from the exchange

unless the form displays a valid OMB

Pub. 525, Taxable and Nontaxable

of property used in a trade or business

control number. Books or records relating

Income.

(and other noncapital assets) on Form

to a form or its instructions must be

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

retained as long as their contents may

Complete Part IV of Form 8824 only if

the exchange of capital assets according

become material in the administration of

the cost of the replacement property is

to the Schedule D instructions for your

any Internal Revenue law. Generally, tax

more than the basis of the divested

return. Be sure to use the date of the

property and you elect to defer the gain.

returns and return information are

exchange as the date for reporting the

Otherwise, report the sale on your

confidential, as required by section 6103.

gain. If the installment method applies to

Schedule D or Form 4797, whichever

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

The time needed to complete and file

applies.

determine the installment sale income

this form will vary depending on individual

taxable for this year and report it on Form

circumstances. The estimated burden for

Your basis in the replacement property

6252.

individual taxpayers filing this form is

is reduced by the amount of the deferred

approved under OMB control number

gain. If you made more than one purchase

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

1545-0074 and is included in the

of replacement property, reduce your

line 24. Otherwise, subtract the amount on

estimates shown in the instructions for

line 23 from the amount on line 19 and

basis in the replacement property in the

their individual income tax return. The

enter the result. For exchanges with

order you acquired it.

estimated burden for all other taxpayers

related parties, see the instructions for

Line 30. Enter the amount you received

who file this form is shown below.

Line

7, earlier.

from the sale of the divested property,

Line 25. The amount on line 25 is your

minus any selling expenses.

Recordkeeping

10 hr., 17 min.

basis in the like-kind property you

. . . .

Line 35. Follow these steps to determine

received in the exchange. Your basis in

Learning about

the amount to enter.

other property received in the exchange, if

the law or the

1. Use Part III of Form 4797 as a

any, is its FMV.

form

1 hr., 59 min.

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

worksheet to figure ordinary income under

Preparing the

Section 1043

the recapture rules.

form

2 hr., 14 min.

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

Conflict-of-Interest Sales

2. Enter on Form 8824, line 35, the

Copying, assembling,

amount from Form 4797, line 31. Do not

(Part IV)

and sending the form

attach the Form 4797 used as a worksheet

to the IRS

10 min.

to your return.

If you sell property at a gain according to a

. . . . . . . .

certificate of divestiture issued by the

3. Report the amount from line 35 on

If you have comments concerning the

Office of Government Ethics (OGE) or the

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

accuracy of these time estimates or

Judicial Conference of the United States

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

suggestions for making this form simpler,

(or its designee) and purchase

not complete columns (b) through (f).

we would be happy to hear from you. See

replacement property (permitted

the instructions for the tax return with

property), you can elect to defer part or all

Line 36. If you sold a capital asset, enter

which this form is filed.

of the realized gain. You must recognize

any capital gain from line 36 on your

gain on the sale only to the extent that the

Schedule D. If you sold property used in a

amount realized on the sale is more than

trade or business (or any other asset for

2014 Instructions for Form 8824

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Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2014 Page 4

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