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purchased within 60 days after the sale.

1. Use Part III of Form 4797 as a

to a form or its instructions must be

(You also must recognize any ordinary

worksheet to figure ordinary income

retained as long as their contents may

income recapture.) Permitted property is

under the recapture rules.

become material in the administration of

any obligation of the United States or any

2. Enter on Form 8824, line 35, the

any Internal Revenue law. Generally, tax

diversified investment fund approved by

amount from Form 4797, line 31. Do not

returns and return information are

the OGE.

attach the Form 4797 used as a

confidential, as required by section 6103.

worksheet to your return.

The time needed to complete and file

If the property you sold was stock

3. Report the amount from line 35 on

this form will vary depending on individual

TIP

you acquired by exercising a

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

circumstances. The estimated burden for

statutory stock option, you may be

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

individual taxpayers filing this form is

treated as meeting the holding periods

not complete columns (b) through (f).

approved under OMB control number

that apply to such stock, regardless of

1545-0074 and is included in the

how long you actually held the stock. This

Line 36. If you sold a capital asset, enter

estimates shown in the instructions for

may benefit you if you do not defer your

any capital gain from line 36 on Schedule

their individual income tax return. The

entire gain, because it may allow you to

D. If you sold property used in a trade or

estimated burden for all other taxpayers

treat the gain as a capital gain instead of

business (or any other asset for which the

who file this form is shown below.

ordinary income. For details, see section

gain is treated as ordinary income), report

421(d) or Pub. 525.

the gain on Form 4797, line 2 or line 10,

Recordkeeping . . . . . . . 10 hr., 45 min.

column (g). In column (a), write “From

Complete Part IV of Form 8824 only if

Learning about

the cost of the replacement property is

Form 8824, line 36.” Do not complete

the law or the form . . . . 2 hr., 17 min.

columns (b) through (f).

more than the basis of the divested

Preparing the form . . . . 2 hr., 33 min.

property and you elect to defer the gain.

Paperwork Reduction Act Notice. We

Copying, assembling,

Otherwise, report the sale on Schedule D

ask for the information on this form to

and sending the form

or Form 4797, whichever applies.

carry out the Internal Revenue laws of the

to the IRS . . . . . . . . . . . 10 min.

Your basis in the replacement property

United States. You are required to give us

is reduced by the amount of the deferred

the information. We need it to ensure that

If you have comments concerning the

gain. If you made more than one

you are complying with these laws and to

accuracy of these time estimates or

purchase of replacement property, reduce

allow us to figure and collect the right

suggestions for making this form simpler,

your basis in the replacement property in

amount of tax.

we would be happy to hear from you. See

the order you acquired it.

the instructions for the tax return with

You are not required to provide the

Line 30. Enter the amount you received

which this form is filed.

information requested on a form that is

from the sale of the divested property,

subject to the Paperwork Reduction Act

minus any selling expenses.

unless the form displays a valid OMB

Line 35. Follow these steps to determine

control number. Books or records relating

the amount to enter.

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Instructions For Form 8824 - Like-Kind Exchanges (And Section 1043 Conflict-Of-Interest Sales) - 2008 Page 4

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