Looking for a Form 8824 Templates? Download it for free!

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

(You also must recognize any ordinary

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

the section 1252, 1254, or 1255 recapture

income recapture.) Permitted property is

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

amount you figured on Form 8824, line 21.

any obligation of the United States or any

complete columns (b) through (f).

Do not enter more than the amount shown

diversified investment fund approved by

Paperwork Reduction Act Notice. We

on Form 6252, line 24 or 35.

the OGE.

ask for the information on this form to carry

3. Also enter this amount on Form

If the property you sold was stock

out the Internal Revenue laws of the

4797, line 15.

you acquired by exercising a

TIP

United States. You are required to give us

4. If all the ordinary income is not

statutory stock option, you may

the information. We need it to ensure that

recaptured this year, report in future years

be treated as meeting the holding periods

you are complying with these laws and to

on Form 6252 the ordinary income up to

that apply to such stock, regardless of how

allow us to figure and collect the right

the taxable installment sale income, until it

long you actually held the stock. This may

amount of tax.

is all reported.

benefit you if you do not defer your entire

You are not required to provide the

gain, because it may allow you to treat the

Line 22. Report a gain from the exchange

information requested on a form that is

gain as a capital gain instead of ordinary

of property used in a trade or business

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

subject to the Paperwork Reduction Act

(and other noncapital assets) on Form

Pub. 525, Taxable and Nontaxable

unless the form displays a valid OMB

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

Income.

control number. Books or records relating

the exchange of capital assets according

to a form or its instructions must be

to the Schedule D instructions for your

Complete Part IV of Form 8824 only if

retained as long as their contents may

return. Be sure to use the date of the

the cost of the replacement property is

become material in the administration of

exchange as the date for reporting the

more than the basis of the divested

any Internal Revenue law. Generally, tax

gain. If the installment method applies to

property and you elect to defer the gain.

returns and return information are

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

Otherwise, report the sale on Schedule D

confidential, as required by section 6103.

determine the installment sale income

or Form 4797, whichever applies.

taxable for this year and report it on Form

The time needed to complete and file

Your basis in the replacement property

6252.

this form will vary depending on individual

is reduced by the amount of the deferred

circumstances. The estimated burden for

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

gain. If you made more than one purchase

individual taxpayers filing this form is

line 24. Otherwise, subtract the amount on

of replacement property, reduce your

approved under OMB control number

line 23 from the amount on line 19 and

basis in the replacement property in the

1545-0074 and is included in the

enter the result. For exchanges with

order you acquired it.

estimates shown in the instructions for

related parties, see the instructions for

their individual income tax return. The

Line 30. Enter the amount you received

line 7.

estimated burden for all other taxpayers

from the sale of the divested property,

Line 25. The amount on line 25 is your

who file this form is shown below.

minus any selling expenses.

basis in the like-kind property you

Line 35. Follow these steps to determine

received in the exchange. Your basis in

Recordkeeping

10 hr., 17 min.

. . . .

the amount to enter.

other property received in the exchange, if

Learning about

any, is its FMV.

1. Use Part III of Form 4797 as a

the law or the

worksheet to figure ordinary income under

Section 1043

form

1 hr., 59 min.

the recapture rules.

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

Conflict-of-Interest Sales

Preparing the

2 hr., 14 min.

2. Enter on Form 8824, line 35, the

form

(Part IV)

amount from Form 4797, line 31. Do not

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

attach the Form 4797 used as a worksheet

Copying, assembling,

If you sell property at a gain according to a

to your return.

and sending the form

certificate of divestiture issued by the

to the IRS

10 min.

3. Report the amount from line 35 on

. . . . . . . .

Office of Government Ethics (OGE) or the

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

Judicial Conference of the United States

If you have comments concerning the

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

(or its designee) and purchase

accuracy of these time estimates or

not complete columns (b) through (f).

replacement property (permitted

suggestions for making this form simpler,

property), you can elect to defer part or all

Line 36. If you sold a capital asset, enter

we would be happy to hear from you. See

of the realized gain. You must recognize

any capital gain from line 36 on

the instructions for the tax return with

gain on the sale only to the extent that the

Schedule D. If you sold property used in a

which this form is filed.

amount realized on the sale is more than

trade or business (or any other asset for

the cost of replacement property

which the gain is treated as ordinary

purchased within 60 days after the sale.

income), report the gain on Form 4797,

2012 Instructions for Form 8824

-4-

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2012 Page 4

Related Articles

Related forms

Related Categories