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property (see the Form 4797 instructions

Office of Government Ethics (OGE) or the

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

for line 26), or

Judicial Conference of the United States

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

(or its designee) and purchase

complete columns (b) through (f).

2. The larger of:

replacement property (permitted

a. The gain shown on line 20, if any,

Paperwork Reduction Act Notice. We

property), you can elect to defer part or all

of the realized gain. You must recognize

ask for the information on this form to carry

b. The excess, if any, of the gain in

gain on the sale only to the extent that the

out the Internal Revenue laws of the

item (1) above over the FMV of the section

amount realized on the sale is more than

United States. You are required to give us

1250 property received.

the information. We need it to ensure that

the cost of replacement property

you are complying with these laws and to

purchased within 60 days after the sale.

Section 1252, 1254, and 1255

(You also must recognize any ordinary

allow us to figure and collect the right

property. The rules for these types of

income recapture.) Permitted property is

amount of tax.

property are similar to those for section

any obligation of the United States or any

1245 property. See Regulations sections

You are not required to provide the

diversified investment fund approved by

1.1252-2(d) and 1.1254-2(d) and

information requested on a form that is

the OGE.

Temporary Regulations section

subject to the Paperwork Reduction Act

16A.1255-2(c) for details. If the installment

If the property you sold was stock

unless the form displays a valid OMB

method applies to this exchange:

you acquired by exercising a

control number. Books or records relating

TIP

to a form or its instructions must be

statutory stock option, you may

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

retained as long as their contents may

be treated as meeting the holding periods

the installment sale income taxable for this

that apply to such stock, regardless of how

become material in the administration of

year and report it on Form 6252.

long you actually held the stock. This may

any Internal Revenue law. Generally, tax

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

benefit you if you do not defer your entire

returns and return information are

the section 1252, 1254, or 1255 recapture

confidential, as required by section 6103.

gain, because it may allow you to treat the

amount you figured on Form 8824, line 21.

gain as a capital gain instead of ordinary

Do not enter more than the amount shown

The time needed to complete and file

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

on Form 6252, line 24 or 35.

this form will vary depending on individual

Pub. 525, Taxable and Nontaxable

circumstances. The estimated burden for

3. Also enter this amount on Form

Income.

individual taxpayers filing this form is

4797, line 15.

approved under OMB control number

Complete Part IV of Form 8824 only if

4. If all the ordinary income is not

1545-0074 and is included in the

the cost of the replacement property is

recaptured this year, report in future years

estimates shown in the instructions for

more than the basis of the divested

on Form 6252 the ordinary income up to

their individual income tax return. The

property and you elect to defer the gain.

the taxable installment sale income, until it

estimated burden for all other taxpayers

Otherwise, report the sale on your

is all reported.

who file this form is shown below.

Schedule D or Form 4797, whichever

applies.

Line 22. Report a gain from the exchange

of property used in a trade or business

Recordkeeping

10 hr., 16 min.

Your basis in the replacement property

. . . .

(and other noncapital assets) on Form

is reduced by the amount of the deferred

Learning about

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

gain. If you made more than one purchase

the law or the

the exchange of capital assets according

of replacement property, reduce your

form

1 hr., 59 min.

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

to the Schedule D instructions for your

basis in the replacement property in the

Preparing the

return. Be sure to use the date of the

order you acquired it.

form

2 hr., 14 min.

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

exchange as the date for reporting the

Line 30. Enter the amount you received

gain. If the installment method applies to

from the sale of the divested property,

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

minus any selling expenses.

determine the installment sale income

If you have comments concerning the

taxable for this year and report it on Form

Line 35. Follow these steps to determine

accuracy of these time estimates or

6252.

the amount to enter.

suggestions for making this form simpler,

we would be happy to hear from you. See

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

1. Use Part III of Form 4797 as a

the instructions for the tax return with

line 24. Otherwise, subtract the amount on

worksheet to figure ordinary income under

which this form is filed.

line 23 from the amount on line 19 and

the recapture rules.

enter the result. For exchanges with

2. Enter on Form 8824, line 35, the

related parties, see the instructions for

amount from Form 4797, line 31. Do not

Line

7, earlier.

attach the Form 4797 used as a worksheet

to your return.

Line 25. The amount on line 25 is your

basis in the like-kind property you

3. Report the amount from line 35 on

received in the exchange. Your basis in

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

other property received in the exchange, if

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

any, is its FMV.

not complete columns (b) through (f).

Section 1043

Line 36. If you sold a capital asset, enter

Conflict-of-Interest Sales

any capital gain from line 36 on your

Schedule D. If you sold property used in a

(Part IV)

trade or business (or any other asset for

If you sell property at a gain according to a

which the gain is treated as ordinary

certificate of divestiture issued by the

income), report the gain on Form 4797,

2015 Instructions for Form 8824

-4-

Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2015 Page 4

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